Chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2020. As of that date, Abernethy has the following trial balance:

	Debit			Credit
Accounts payable				$	56,400
Accounts receivable	$	43,900
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		217,000
Cash and short-term investments		76,750
Common stock					250,000
Equipment (net) (5-year remaining life)		367,500
Inventory		96,500
Land		122,000
Long-term liabilities (mature 12/31/23)					182,500
Retained earnings, 1/1/20					396,250
Supplies		11,500
Totals	$	935,150		$	935,150

During 2020, Abernethy reported net income of $103,500 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $145,250 while declaring and paying dividends of $47,000.

Assume that Chapman Company acquired Abernethys common stock for $793,300 in cash. As of January 1, 2020, Abernethys land had a fair value of $134,000, its buildings were valued at $267,800, and its equipment was appraised at $336,250. 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.)

a. Prepare entry *C to convert parent's beginning retained earnings to full accrual basis.

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

c. Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill.

d. Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method.

e. Prepare entry D to eliminate intra-entity dividend transfers.

f. Prepare entry E to recognize current year amortization expense.

g. Prepare entry *C to convert parent's beginning retained earnings to full accrual basis.

h. Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021.

i. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021.

j. Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method.

k. Prepare entry D to eliminate intra-entity dividend transfers.

l. Prepare entry E to recognize current year amortization expense.