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 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.

Consolidation

Worksheet Entries

Prepare entry $S$ to eliminate stockholders' equity accounts of subsidiary.

Prepare entry S to eliminate stockholders' equity accounts of subsidiary.

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

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

Prepare entry E to recognize $2023$ amortization expense.

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

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

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

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

Prepare entry E to recognize $2024$ amortization expense.