Chapman Company obtains $100$ percent of Abernethy Company$$s stock on January $1,2020.$ As of that date, Abernethy has the following trial balance:

Accounts payable $ $57,600$

Accounts receivable $ $40,600$

Additional paid$-$in capital $50,000$

Buildings $($net$)(4-$year remaining life$)126,000$

Cash and short$-$term investments $65,750$

Common stock $250,000$

Equipment $($net$)(5-$year remaining life$)390,000$

Inventory $100,000$

Land $110,000$

Long$-$term liabilities $($mature $12/31/23)187,500$

Retained earnings, $1/1/20306,850$

Supplies $19,600$

Totals $ $851,950$ $ $851,950$

During $2020,$ Abernethy reported net income of $$108,500$ while declaring and paying dividends of $$14,000.$ During $2021,$ Abernethy reported net income of $$139,750$ while declaring and paying dividends of $$54,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$719,200$ in cash. As of January $1,2020,$ Abernethy$$s land had a fair value of $$122,700,$ its buildings were valued at $$185,200,$ and its equipment was appraised at $$353,250.$ 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.$)$

$1$

Prepare entry $*$C to convert parent's beginning retained earnings to full accrual basis.

$2$

Prepare entry S to eliminate stockholders' equity accounts of subsidiary.

$3$

Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill.

$4$

Prepare entry I to eliminate the income accrual for $2020$ less the amortization recorded by the parent using the equity method.

$5$

Prepare entry D to eliminate intra$-$entity dividend transfers.

$6$

Prepare entry E to recognize current year amortization expense.

$7$

Prepare entry $*$C to convert parent's beginning retained earnings to full accrual basis.

$8$

Prepare entry S to eliminate stockholders' equity accounts of subsidiary for $2021.$

$9$

Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2021.$

$10$

Prepare entry I to eliminate the income accrual for $2021$ less the amortization recorded by the parent using the equity method.

$11$

Prepare entry D to eliminate intra$-$entity dividend transfers.

$12$

Prepare entry E to recognize current year amortization expense.