calculate goodwill($70,000)

Problems 19 through 21 should be viewed as independent situations. They are based on the following data: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Credit Debit $50,000 Accounts payable... Accounts receivable.... Additional paid-in capital.... Buildings (net)(4-year remaining life Cash and short-term investments $40,000 50,000 120,000 60,000 250,000 Common stock Equipment (net)(5-year remaining life) Inventory... Land.... Long-term liabilities (mature 12/31/20), Retained earnings, 1/1/17.. Supplies 200,000 90,000 80,000 150,000 100,000 10,000 $600,000 $600,000 Totals... During 2017, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2018, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000. 19. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2017, Abernethy's land had a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018 econ nnn:-saah An ma