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				$	59,900
Accounts receivable	$	43,700
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		123,000
Cash and short-term investments		80,500
Common stock					250,000
Equipment (net) (5-year remaining life)		270,000
Inventory		138,500
Land		118,500
Long-term liabilities (mature 12/31/23)					175,000
Retained earnings, 1/1/20					257,100
Supplies		17,800
Totals	$	792,000		$	792,000

During 2020, Abernethy reported net income of $112,000 while declaring and paying dividends of $14,000. During 2021, Abernethy reported net income of $163,250 while declaring and paying dividends of $54,000.

Assume that Chapman Company acquired Abernethys common stock for $651,550 in cash. As of January 1, 2020, Abernethys land had a fair value of $132,100, its buildings were valued at $166,600, and its equipment was appraised at $242,750. Chapman uses the equity method for this investment.

Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Need this for both 2020 and 2021