Adams, Incorporated, acquires Clay Corporation on January $1,2023,$ in exchange for $$580,700$ cash. Immediately after the acquisition, the two companies have the following account balances. Clay$$s equipment $($with a five$-$year remaining life$)$ is actually worth $$518,700.$ Credit balances are indicated by parentheses.

Items Adams Clay

Current assets $ $310,000$ $ $222,000$

Investment in Clay $580,7000$

Equipment $739,700456,000$

Liabilities $(265,000)(163,000)$

Common stock $(350,000)(150,000)$

Retained earnings, $1/1/23(1,015,400)(365,000)$

In $2023,$ Clay earns a net income of $$62,400$ and declares and pays a $$5,000$ cash dividend. In $2023,$ 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 $2024,$ selected account balances for the two companies are as follows:

Items Adams Clay

Revenues $ $(512,000)$ $ $(318,000)$

Expenses $371,200238,500$

Investment income Not given $0$

Retained earnings, $1/1/24$ Not given $(422,400)$

Dividends declared $08,000$

Common stock $(350,000)(150,000)$

Current assets $654,000275,100$

Investment in Clay Not given $0$

Equipment $634,700492,300$

Liabilities $(198,100)(125,800)$

Required:

What are the December $31,2024,$ Investment Income and Investment in Clay account balances assuming Adams uses the:

Equity method.

Initial value method.

What is the amount of Consolidated Expenses in its December $31,2024,$ consolidated income statement under each of the following methods?

What is the amount of Consolidated Equipment in its December $31,2024,$ consolidated balance sheet under each of the following methods?

What is Adams$$s January $1,2024,$ Retained Earnings account balance assuming Adams accounts for its investment in Clay using the:

Equity value method.

Initial value method.

What worksheet adjustment to Adams$$s January $1,2024,$ Retained Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method?

Prepare the worksheet entry to eliminate Clay$$s stockholders$$ equity.

What is consolidated net income for $2024?$