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

following trial balance:

During $2023,$ Abernethy reported net income of $$96,000$ while declaring and paying dividends of $$12,000.$ During $2024,$ Abernethy

reported net income of $$141,000$ while declaring and paying dividends of $$45,000.$

Assume that Chapman Company acquired Abernethy's common stock for $$635,560$ in cash. Assume that the equipment and long$-$

term liabilities had fair values of $$287,450$ and $$144,440,$ respectively, on the acquisition date. Chapman uses the initial value method

to account for its investment.

Required:

Prepare the journal c entry only