Adams, Incorporated, acquires Clay Corporation on January 1, 2023, in exchange for $555,500 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 $487,300. Credit balances are indicated by parentheses. Items Adams Clay Current assets $ 422,000 $285,000 Investment in Clay 555, 500 0 Equipment 727,300 430,000 Liabilities (286,000) (221,000) Common stock (350,000) (150,000) Retained earnings, 1/1/23 (1,068,800) (344,000) In 2023, Clay earns a net income of $69, 300 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 $175,000 and declares no dividends. At the end of 2024, selected account balances for the two companies are as follows: Items Adams Clay Revenues $ (510,000) $ (268,000) Expenses 369,750 201,000 Investment income Not given 0 Retained earnings, 1/1/24 Not given (408,300) Dividends declared 0 8,000 Common stock (350,000) (150,000) Current assets 798,000 331,800 Investment in Clay Not given 0 Equipment 641,800 488, 800 Liabilities (218,800) (186,800) 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?