question 2

Adams, Inc., acquires Clay Corporation on January 1,2020 , 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 life) is actually worth $505,400. Credit balances are indicated by parentheses. In 2020, Clay earns a net income of $71,100 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 $179,000 and declares no dividends. At the end of 2021 , selected account balances for the two companies are as follows: 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? c. What is the amount of Consolidated Equipment in its December 31,2021 , consolldated 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 initlal value method? f. Prepare the worksheet entry to eliminate Clay's stockholders' equity. g. What is consolidated net income for 2021 ? Complete this question by entering your answers in the tabs below. What are the December 31, 2021, Investment income and Investment in Clay account balances assuming Adams uses the: g. What is consolidated net income for 2021? Complete this question by entering your answers in the tabs below. 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 Eamings account balance assuming Adams accounts for its investment in Clay using the: Equity value method. Initial value method. a. What worksheet adjustment to Adams's January 1, 2021, Retained Earnings account balance is required if Adams accounts for its nvestment in Clay using the initial value method? . Prepare the worksheet entry to ellminate Clay's stockholders' equity, (If no entry is required for a transaction/event, select "No joumal entry required in the first account field.) Show less a Consolidation Worksheet Entries Record the adjustment to retained earnings if Adams accounts for its investment in Clay under the initial value method. Noter Enter debits before credits. - Initial value method. b. What is the amount of Consolidated Expenses in its December 31,2021 , consolidated income statement under each of the follow 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 - 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? Complete this question by entering your answers in the tabs below. What is consolidated net income for 2021