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 $2024?$

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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 life) is actually worth $505,400. Credit balances are indicated by parentheses. Items Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/23 Adams $310,000 574,400 Clay $ 241,000 738,400 0 440,000 (213,000) (181,000) (350,000) (1,059,800) (150,000) (350,000) 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: Items Revenues Expenses Investment income Retained earnings, 1/1/24 Dividends declared Common stock Current assets Investment in Clay Equipment Liabilities Adams Clay $ (590,000) $ (418,000) 427,750 Not given Not given (350,000) 683,000 Not given 641,400 (153,600) 313,500 0 (416,100) 8,000 (150,000) 292,900 0 481,400 (131,800) 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 life) is actually worth $505,400. Credit balances are indicated by parentheses. Items Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/23 Adams $310,000 574,400 Clay $ 241,000 738,400 0 440,000 (213,000) (181,000) (350,000) (1,059,800) (150,000) (350,000) 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: Items Revenues Expenses Investment income Retained earnings, 1/1/24 Dividends declared Common stock Current assets Investment in Clay Equipment Liabilities Adams Clay $ (590,000) $ (418,000) 427,750 Not given Not given (350,000) 683,000 Not given 641,400 (153,600) 313,500 0 (416,100) 8,000 (150,000) 292,900 0 481,400 (131,800)