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Chapman Company obtains 1 0 0 percent of Abernethy Company s stock on January 1 , 2 0 2 3 . As of that date,

Chapman Company obtains 100 percent of Abernethy Companys stock on January 1,2023. As of that date, Abernethy has the following trial balance:
Items Debit Credit
Accounts payable - $ 59,900
Accounts receivable $ 43,700-
Additional paid-in capital -50,000
Buildings (net)(4-year remaining life)123,000-
Cash and short-term investments 80,500-
Common stock -250,000
Equipment (net)(5-year remaining life)270,000-
Inventory 138,500-
Land 118,500-
Long-term liabilities (mature 12/31/26)-175,000
Retained earnings, 1/1/23-257,100
Supplies 17,800-
Totals $ 792,000 $ 792,000
During 2023, Abernethy reported net income of $112,000 while declaring and paying dividends of $14,000. During 2024, Abernethy reported net income of $163,250 while declaring and paying dividends of $54,000.
Assume that Chapman Company acquired Abernethys common stock for $662,740 in cash. Assume that the equipment and long-term liabilities had fair values of $290,700 and $141,560, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.
Required:
Prepare consolidation worksheet entries for December 31,2023, and December 31,2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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