Adams, Inc., acqulres Clay Corporation on January 1, 2017, In exchange for $580,700 cash. Immedlately after the acquisltion, the two companles have the following account balances. Clay's equipment (with a five-year remalning lfe) Is actually worth $518,700. Credit balances are Indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Conmon stock Retained earnings, 1/1/17 $ 318,888 222,e80 456 , (358,888 (158,898) 580,708 739,708 (265,868) (163,868) (1,815,48) (365,808) In 2017, Clay earns a net Income of $62,400 and declares and pays a $5,000 cash divMdend. In 2017, Adams reports net Income from Its own operations (exclusive of any Income from Clay) of $173,000 and declares no dividends. At the end of 2018, selected account balances for the two companles are as follows: (512,888) $ (318,888) Expenses Investnent incone Retained earnings, 1/1/18 Dividends declared Conmon stock Current assets Investnent in Clay Equipment Liabilities 371,280 Not given Not given 238,580 (422,488) (158,898) 8,808 (358,898) 654,888 275,180 Not given 634,780 198,1 (125,888) 492,388 a. What are the December 31, 2018, Investment Income and Investment In Clay account balances assuming Adams uses the: Equity method. .Initial value method. b. How does the parent's Internal Investment accounting method choice affect the amount reported for expenses In Its December 31, 2018, consolidated Income statement? . How does the parent's Internal investment accounting method Choice affect the amount reported for equipment in its December 31, 2018, consolidated balance sheet