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 $-$ $ $50,300$

Accounts receivable $ $47,500-$

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

Buildings $($net$)(4-$year remaining life$)201,000-$

Cash and short$-$term investments $61,750-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)447,500-$

Inventory $127,500-$

Land $124,000-$

Long$-$term liabilities $($mature $12/31/26)-162,000$

Retained earnings, $1/1/23-514,850$

Supplies $17,900-$

Totals $ $1,027,150$ $ $1,027,150$

During $2023,$ Abernethy reported net income of $$97,000$ while declaring and paying dividends of $$12,000.$ During $2024,$ Abernethy reported net income of $$141,250$ while declaring and paying dividends of $$48,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$919,830$ in cash. Assume that the equipment and long$-$term liabilities had fair values of $$471,000$ and $$131,120,$ 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. $1-$Prepare entry S to eliminate stockholders' equity accounts of subsidiary.

$2-$Prepare entry A to recognize allocations in connection with acquisition$-$date fair values.

$3-$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$4-$Prepare entry E to recognize $2023$ amortization expense.

$5-$Prepare entry $*$C to convert parent company figures to equity method.

$6-$Prepare entry S to eliminate stockholders' equity accounts of subsidiary for $2024.$

$7-$Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2024.$

$8$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$9$Prepare entry E to recognize $2024$ amortization expense.