2 points 1 Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date. Abernethy has the following trial balance: Debit Credit Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock $ 54,100 $ 48,500 50,000 130,000 66,000 250,000 Equipment (net) (5-year remaining life) Inventory 437,500 Land 109,000 89,000 Long-term liabilities (nature 12/31/23) 178,500 Retained earnings, 1/1/20 358,800 Supplies 11,400 Totals $891,400 5 891,400 During 2020, Abernethy reported net income of $126,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $174,000 while declaring and paying dividends of $49,000. Assume that Chapman Company acquired Abernethy's common stock for $773,550 in cash. As of January 1, 2020, Abernethy's land had a fair value of $104,200, its buildings were valued at $208,800, and its equipment was appraised at $396,500. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Date Accounts 1 December 31, 2021 No joumal entry required 2 December 31, 2021 Common stock-Abernethy Additional paid-in capital Retained earnings-1/1/20 Investment in Abernethy Debit Credit 250,000 50,000 358,800 658,800 3 December 31, 2021 Land 15,200 Buildings 78,800 Goodwil Equipment Investment in Abamethy 114,750 4 5 December 31, 2021 Equity in subsidiary earnings Investment in Abernethy December 31, 2021 Investment in Abernethy Dividends declared 18,000 18,000 2 points 1 3 Investment in Abernethy December 31, 202 Land Buildings Goodwil Equipment 4 Investment in Abernethy December 31, 2021 Equity in subsidiary earnings Investment in Abernathy 5 B December 31, 2021 Investment in Abernethy Dividends declared December 31, 2021 Depreciation expense Equipment Buildings 7 December 31, 202 No joumal entry required 8 9 10 11 12 December 31, 202 Common stock-Abernethy Additional paid-in capital Retained earnings-1/1/21 Investment in Abernethy December 31, 202 Land Buildings Goodwil Equipment Investment in Abernethy December 31, 202 Equity in subsidiary earnings Investment in Abernathy December 31, 202 Investment in Abernathy Dividends declared December 31, 202 Depreciation expense Equipment Buildings 00000 00 00 0000 0000 00000 00 00 000 15,200 78,800 658,800 114,750 18,000 16,000 250,000 50,000 19,700