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 $-$ $ $59,900$

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 Abernethy$$s common stock for $$651,550$ in cash. As of January $1,2023,$ Abernethy$$s land had a fair value of $$132,100,$ its buildings were valued at $$166,600,$ and its equipment was appraised at $$242,750.$ Chapman uses the equity method for this investment.

Required:

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

Prepare entry

$1*$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 recognized by the parent. $11$Prepare entry D to eliminate intra$-$entity dividend transfers.

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