Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Common stock Depit Credit $ 55,300 $ 45,800 50,000 197,000 Cash and short-term investments 81,500 250,000 Equipment (net) (5-year cenaining life) 345,000 Inventory 124,500 Land 125,000 Long-term liabilities (mature 12/31/23) 176,500 Retained earnings, 1/1/20 402,900 Supplies 15,900 Totals $934,700 $934,700 During 2020, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2021, 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, 2020, 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, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries 2 3 4 5 6 7 8 ... 12 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Date December 31, 2020 Accounts Debit Credit Record entry Clear entry view consolidation entries < 2 3 4 5 6 7 8 12 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date December 31, 2020 Accounts Debit Credit < 1 2 3 4 5 6 7 8 ..... 12 > 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 December 31, 2020 Accounts Debit Credit Record entry Clear entry view consolidation entries < 1 2 3 4 5 6 7 8 ..... 12 Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. Note: Enter debits before credits. Date December 31, 2020 Accounts Debit Credit Record entry Clear entry view consolidation entries > < 1 2 3 4 5 6 7 8 ... 12 > Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date December 31, 2020 Accounts Debit Credit Record entry Clear entry view consolidation entries < 1 2 3 4 5 6 7 8..... 12 > Prepare entry E to recognize current year amortization expense. Note: Enter debits before credits. Date December 31, 2020 Accounts Debit Credit Record entry Clear entry view consolidation entries < 1 2 3 4 5 6 7 8 ..... 12 > Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Date December 31, 2021 Accounts Debit Credit Record entry Clear entry view consolidation entries < 1 2 3 4 5 6 7 8 12 > Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. Note: Enter debits before credits. Date December 31, 2021 Accounts Debit Credit Record entry Clear entry view consolidation entries < 1 ... 5 6 7 8 9 10 10 ..... 12 > Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Note: Enter debits before credits. Date December 31, 2021 Accounts Debit Credit 1 9 5 a 5 a Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note: Enter debits before credits. Date December 31, 2021 Accounts Debit Credit Record entry Clear entry view consolidation entries Worksh 1 ... 5 6 7 8 9 10 Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date December 31, 2021 11 12 > Accounts Debit Credit Record entry Clear entry view consolidation entries < 1 ... 5 6 7 8 9 10 11 Prepare entry E to recognize current year amortization expense. Note: Enter debits before credits. Date December 31, 2021 12 Accounts Debit Credit Record entry Clear entry view consolidation entries