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 $-$ $ $58,900$

Accounts receivable $ $41,500-$

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

Buildings $($net$)(4-$year remaining life$)211,000-$

Cash and short$-$term investments $70,750-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)430,000-$

Inventory $139,000-$

Land $121,500-$

Long$-$term liabilities $($mature $12/31/26)-174,000$

Retained earnings, $1/1/23-498,450$

Supplies $17,600-$

Totals $ $1,031,350$ $ $1,031,350$

During $2023,$ Abernethy reported net income of $$120,000$ while declaring and paying dividends of $$15,000.$ During $2024,$ Abernethy reported net income of $$170,000$ while declaring and paying dividends of $$48,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$902,200$ in cash. As of January $1,2023,$ Abernethy$$s land had a fair value of $$133,000,$ its buildings were valued at $$277,000,$ and its equipment was appraised at $$393,500.$ Chapman uses the equity method for this investment.