Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $732,300 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $604,900. Credit balances are indicated by parentheses. Clay $ 290,000 Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/20 Adams $ 326,000 732,300 781,900 (280,000) (350,000) (1,210,200) 526,000 (170,000) (150,000) (496,000) In 2020, Clay earns a net income of $62,700 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 $193,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows: $ Revenues Expenses Investment income Retained earnings, 1/1/21 Adams (452,000) 327,700 Not given Not given Clay $ (272,000) 204,000 0 (553,700) Dividends declared Common stock Current assets Investment in Clay Equipment Liabilities 8,000 (150,000) 342,800 0 (350,000) 651,000 Not given 701,900 (208,900) 574,900 (130,700) 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 Adams's 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 Adams's 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 Clay's stockholders' equity. g. What is consolidated net income for 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Reg B to D Req E and F Req G What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the: What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the: Equity method Initial value method Investment Investment Income in Clay $ 15,780 $ 834,500 $ 8,000 $ 732,300 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 Adams's January 1, 2021, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the: Equity value method. Initial value method. Show less b. Consolidated Expense $ 547,480 c. Consolidated Equipment d. Retained Earnings Equity method Initial value method Partial equity method e. What worksheet adjustment to Adams's 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 Clay's stockholders' equity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less No Credit Date Accounts January 01, 2021 Investment in Clay Retained earnings, 1/1/21 (Adam) Debit 50,300 1 50,300 2 December 31, 202 Common stock(Clay) Retained earnings, 1/1/21 (Clay) Investment in Clay 150,000 272,000 422,000 Complete this question by entering your answers in the tabs below. Req A Reg B to D Req E and F ReqG What is consolidated net income for 2021? Consolidated net income $ 184,900 X