Adams, Incorporated, acquires Clay Corporation on January $1,2023,$ in exchange for $$574,400$ cash. Immediately after the acquisition,

the two companies have the following account balances. Clay's equipment $($with a five$-$year remaining ife$)$ is actually worth $$505,400.$

Credit balances are Indicated by parentheses.

In $2023,$ Clay earns a net income of $$71,100$ and declares and pays a $$5,000$ cash dividend. In $2023,$ Adams reports net income from

its own operations $($exclusive of any income from Clay$)$ of $$179,000$ and declares no dividends. At the end of $2024,$ selected account

balances for the two companies are as follows:

Required:

a$.$ What are the December $31,2024,$ 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 $31,2024,$ consolidated income statement under each of the

following methods?

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

methods?

d$.$ 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.

e$.$ 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?

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

g$.$ What is consolidated net income for $2024?$

Complete this question by entering your answers in the tabs below.