Chapman Company obtains $100$ percent of Abernethy Company$$s stock on January $1,2023.$ As of that date, Abernethy has the following trial balance:

Items Debit Credit

Accounts payable $-$ $ $58,300$

Accounts receivable $ $43,500-$

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

Buildings $($net$)(4-$year remaining life$)210,000-$

Cash and short$-$term investments $83,250-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)417,500-$

Inventory $95,000-$

Land $103,000-$

Long$-$term liabilities $($mature $12/31/26)-163,000$

Retained earnings, $1/1/23-445,850$

Supplies $14,900-$

Totals $ $967,150$ $ $967,150$

During $2023,$ Abernethy reported net income of $$122,000$ while declaring and paying dividends of $$15,000.$ During $2024,$ Abernethy reported net income of $$175,000$ while declaring and paying dividends of $$55,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$877,650$ in cash. As of January $1,2023,$ Abernethy$$s land had a fair value of $$116,200,$ its buildings were valued at $$285,600,$ and its equipment was appraised at $$391,750.$ Chapman uses the equity method for this investment.

Required:

Prepare consolidation worksheet entries for December $31,2023,$ and December $31,2024.$

$1)$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 specific accounts at acquisition date.

$4)$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$5)$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 $2024.$

$9)$Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2024.$

$10)$Prepare entry I to eliminate the subsidiary income accrual recogniz

ed by the parent.

$11)$Prepare entry D to eliminate intra$-$entity dividend transfers.

$12)$Prepare entry E to recognize current year amortization expense.