Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $713,300 cash. Immediately after the acquisition, the two companies have the following account balances. Clays equipment (with a five-year remaining life) is actually worth $641,000. Credit balances are indicated by parentheses.

	Adams			Clay
Current assets	$	382,000		$	272,000
Investment in Clay		713,300			0
Equipment		837,000			584,000
Liabilities		(202,000	)		(224,000	)
Common stock		(350,000	)		(150,000	)
Retained earnings, 1/1/20		(1,380,300	)		(482,000	)

In 2020, Clay earns a net income of $74,100 and declares and pays a $5,000 cash dividend. In 2020, Adams reports net income from its own operations (exclusive of any income from Clay) of $160,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows:

	Adams			Clay
Revenues	$	(544,000	)	$	(286,000	)
Expenses		394,400			214,500
Investment income		Not given			0
Retained earnings, 1/1/21		Not given			(551,100	)
Dividends declared		0			8,000
Common stock		(350,000	)		(150,000	)
Current assets		756,000			322,400
Investment in Clay		Not given			0
Equipment		756,500			622,400
Liabilities		(149,800	)		(189,800	)

a. What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the:

Equity method.

Initial value method.

b. What is the amount of Consolidated Expenses in its December 31, 2021, consolidated income statement under each of the following methods?

c. What is the amount of Consolidated Equipment in its December 31, 2021, consolidated balance sheet under each of the following methods?

d. What is Adamss January 1, 2021, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the:

Equity value method.

Initial value method.

e. What worksheet adjustment to Adamss January 1, 2021, Retained Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method?

f. Prepare the worksheet entry to eliminate Clays stockholders equity.

g. What is consolidated net income for 2021?

PLEASE BOLD ANSWERS! THANKS