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). Debit Credit $ 57,300 $ 42,200 50,000 214,000 Cash and short-term investments 82,250 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 375,000 90,500 117,000 170,000 409,650 Land Long-term liabilities (nature 12/31/23) Retained earnings, 1/1/201 Supplies Totals 16,000 $936,950 $ 936,950 During 2020, Abernethy reported net income of $117,500 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $171,250 while declaring and paying dividends of $55,000. Assume that Chapman Company acquired Abernethy's common stock for $816,280 in cash. Assume that the equipment and long-term liabilities had fair values of $396,950 and $140,720, respectively, on the acquisition date. Chapman uses the initial value method to account for its 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.) view transaction list Consolidation Worksheet Entries 2 Prepare entry A to recognize allocations in connection with acquisition-date fair values. > < 1 2 3 4 5 9 Prepare entry I to eliminate intra-entity dividends. Note: Enter debits before credits. Date 7 8 9 Accounts Debit Credit December 31, Equity in subsidiary earnings 103,600 2020 Investment in Abernethy 103,600 Consolidation Worksheet Entries < 1 2 3 4 5 6 Prepare entry E to recognize 2020 amortization expense. Note: Enter debits before credits. Date 7 8 6 Accounts Debit Credit December 31, 2020 Depreciation expense 13,900 Equipment 4,500 Buildings 18,400 > Worksheet Entries < 1 2 3 5 16 7 8 Prepare entry *C to convert parent company figures to equity method. 6 Date December 31, Accounts Debit Credit No journal entry required 2021 Note: Enter debits before credits. view transaction list Consolidation Worksheet Entries 2 3 4 5 6 7 8 9 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 Land 15,000 Buildings 55,200 Goodwill 84,750 Equipment 18,000 Investment in Abernethy 136,950 Consolidation Worksheet Entries < 2 3 5 6 7 8 9 Prepare entry A to recognize allocations in connection with acquisition-date fair values. Note: Enter debits before credits. Accounts Debit Credit 136,950 136,950 Date December 31, 2021 Goodwill Investment in Abernethy > 1 2 3 4 5 LO 6 7 8 00 Prepare entry E to recognize 2021 amortization expense. Note: Enter debits before credits. 6 Date Accounts Debit Credit December 31, 2021 Depreciation expense Equipment 55,000 55,000 No 1 Date December 31, 202 Common stock-Abernethy Additional paid-in capital Retained earnings-1/1/20 Investment in Abernethy Accounts 0000 Debit Credit 250,000 50,000 409,650 709,650 2 December 31, 202 Land 3 4 Buildings Goodwill Equipment Investment in Abernethy December 31, 202 Equity in subsidiary earnings Investment in Abernethy December 31, 202 Depreciation expense Equipment Buildings 100 * 15,000 73,600 x 84,750 22,500 x 150,850 103,600x 103,600 13,900 4,500x 18,400 5 December 31, 202 No journal entry required 6 December 31, 202 Common stock-Abernethy Additional paid-in capital Retained earnings-1/1/21 Investment in Abernethy 7 December 31, 202 Land Buildings Goodwill Equipment Investment in Abernethy 8 December 31, 202 Goodwill Investment in Abernethy O December 31, 202 Depreciation expense Equipment *** 3000 250,000 50,000 512,150 15,000 55,200 84,750 00 812,850 18,000 136,950 136,950 136,950 55,000 55,000