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 $55,300 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 12/31/2e) Retained earnings, 1/1/17 Supplies $ 45,80e se,000 197,e00 81,500 250,00e 345,e0e 124,500 125,00e 176, 500 402,900 15,900 Totals $934,70e $934,700 During 2017, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2018, Abernethy reported net income of $167,750 while declaring and paying dividends of $41,000. Assume that Chapman Company acquired Abernethy's common stock for $819,850 in cash. As of January 1, 2017, Abernethy's land had a fair value of $141,900, its buildings were valued at $251,800, and its equipment was appraised at $306,750. Chapman uses the equity method for this 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 Consolidation Worksheet Entries 4 6 1 2 3 4 56 7 89 10> Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date Accounts Debit Credit 250,000 50,000 402,900 December 31, 2017 Common stock - Abernethy Additional paid-in capital Retained earnings - 1/1/17 Investment in Abernethy 702,900 1 2 3 4 5678 9 10> Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 (Goodwill nvestment in Chapman 2 4 6 7 8 Prepare entry I to eliminate $124,500 income accrual for 2017 less $6,050 amortization recorded by parent using equity method Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 2 7 8 9 10 Prepare entry D to eliminate intra-entity dividend transfers Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 1 2 5 6 789 10 Prepare entry E to recognize current year amortization expense. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 20117 1 2 4 6 8 9 10 Prepare entry S to eliminate beginning stockholders' equity of subsidiary-the Retained Earnings account has been adjusted for 2017 income and dividends. Entry *C is not needed because equity method was applied. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 1 2 6 7 Prepare entry A to recognize allocations relating to investment-balances shown here are as of beginning of current year [original allocation less excess amortizations for the prior period] Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 1 2 6 7 Prepare entry A to recognize allocations relating to investment-balances shown here are as of beginning of current year [original allocation less excess amortizations for the prior period] Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 1 2 3 4 5 678 910 Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 2 3 4 5 678 9 10 Prepare entry E to recognize current year amortization expense. ote: Enter debits before credits. Date Accounts Debit Credit December 31, 2018