Adams, Incorporated, acquires Clay Corporation on January 31, 2023, in exchange for $550,400 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 $537,600. Credit balances are indicated by parentheses.

Items Adams Clay
Current assets $ 480,000 $ 236,000
Investment in Clay 550,400 0
Equipment 713,600 462,000
Liabilities (261,000) (232,000)
Common stock (350,000) (150,000)
Retained earnings, 1/1/23 (1,133,000) (316,000)
In 2023, Clay earns a net income of $50,400 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 $201,000 and declares no dividends. At the end of 2024, selected account balances for the two companies are as follows:

Items Adams Clay
Revenues $ (508,000) $ (360,000)
Expenses 368,300 270,000
Investment income Not given 0
Retained earnings, 1/1/24 Not given (361,400)
Dividends declared 0 8,000
Common stock (350,000) (150,000)
Current assets 784,000 304,100
Investment in Clay Not given 0
Equipment 602,100 515,100
Liabilities (196,800) (175,300)

What is Adams’s January 31, 2024, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the:

Equity value method.
Initial value method.