Adams, Incorporated, acquires Clay Corporation on January $1,2023,$ in exchange for $$542,800$ cash. Immediately after the acquisition, the two companies have the following account balances. Clay$$s equipment $($with a five$-$year remaining life$)$ is actually worth $$501,300.$ Credit balances are indicated by parentheses.

Items Adams Clay

Current assets $ $362,000$ $ $285,000$

Investment in Clay $542,8000$

Equipment $705,300444,000$

Liabilities $(243,000)(251,000)$

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

Retained earnings, $1/1/23(1,017,100)(328,000)$

In $2023,$ Clay earns a net income of $$59,700$ and declares and pays a $$5,000$ cash dividend. In $2023,$ Adams reports net income from its own operations $($exclusive of any income from Clay$)$ of $$144,000$ and declares no dividends. At the end of $2024,$ selected account balances for the two companies are as follows:

Items Adams Clay

Revenues $ $(404,000)$ $ $(252,000)$

Expenses $292,900189,000$

Investment income Not given $0$

Retained earnings, $1/1/24$ Not given $(382,700)$

Dividends declared $08,000$

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

Current assets $648,000343,500$

Investment in Clay Not given $0$

Equipment $598,800480,600$

Liabilities $(179,100)(204,500)$

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 $2024?$