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

Initial value method.

Note: I've already looked and all answers posted on Chegg are wrong.

Adams, Incorporated, acquires Clay Corporation on January 1, 2023, in exchange for $640,300 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 $574,600. Credit balances are indicated by parentheses. In 2023, Clay earns a net income of $78,000 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 $170,000 and declares no dividends. At the end of 2024 , selected account balances for the two companies are as follows