Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Debit Credit $ 50,500 $ 44,100 50,000 166,000 79,250 250,000 Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/20) Retained earnings, 1/1/17 Supplies Totals 292,500 100,500 128,000 188,000 288,850 17,000 $827,350 $ 827,350 During 2017, Abernethy reported net income of $103,000 while declaring and paying dividends of $13,000. During 2018, Abernethy reported net income of $144,250 while declaring and paying dividends of $58,000. Assume that Chapman Company acquired Abernethy's common stock for $692,830 in cash. Assume that the equipment and long-term liabilities had fair values of $313,100 and $156,920, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment. Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list X De! Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Prepare entry A to recognize allocations determined above in connection with acquisition-date fair values. 3 Prepare entry I to eliminate intra-entity dividend declarations recorded by parent as income. 4 Prepare entry E to recognize 2017 amortization expense. i 5 Prepare entry *C to convert parent company figures to equity method by recognizing subsidiary's increase in book value for prior year ($103,000 net income less $13,000 dividend declaration) and excess amortizations - A. NAAT Note : journal entry has been entered WWE Debit 25 TUI VIOL Peruu LP14,00 5 28 6 Prepare entry S to eliminate beginning of year stockholders' equity accounts of subsidiary. The retained earnings balance has been adjusted for 2017 net income and dividends.