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 $ 55,100 $ 44,700 50,000 163,000 Cash and short-term investments 83,750 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 207,500 122,000 Land 85,500 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 162,500 202,150 Supplies Totals 13,300 $719,750 $ 719,750 During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $136,750 while declaring and paying dividends of $36,000. Assume that Chapman Company acquired Abernethy's common stock for $612,390 in cash. Assume that the equipment and long-term liabilities had fair values of $232,000 and $130,860, respectively, on the acquisition date. Chapman uses the initial value method to During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $136,750 while declaring and paying dividends of $36,000. Assume that Chapman Company acquired Abernethy's common stock for $612,390 in cash. Assume that the equipment and long-term liabilities had fair values of $232,000 and $130,860, 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.) Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Common stock-Abernethy Additional paid-in capital Retained earnings-1/1/20 Investment in Abernethy Prepare entry A to recognize allocations in connection with acquisition-date fair values. Note: Enter debits before credits. Date December 31, 2020 Equipment Long-term liabilities Accounts Debit Credit Goodwill Investment in Abernethy Prepare entry I to eliminate intra-entity dividends. Note: Enter debits before credits. Date December 31, 2020 Dividend income Dividends declared Accounts Debit Credit Prepare entry E to recognize 2020 amortization expense. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Depreciation expense ' Interest expense Equipment Long-term liabilities Prepare entry *C to convert parent company figures to equity method. ote: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Investment in Abernethy Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Common stock-Abernethy Additional paid-in capital Retained earnings-1/1/21 Investment in Abernethy Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Equipment Long-term liabilities Goodwill Investment in Abernethy Prepare entry I to eliminate intra-entity dividends. Note: Enter debits before credits. Date December 31, 2021 Dividend income Dividends declared Accounts Debit Credit Prepare entry E to recognize 2021 amortization expense. ote: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Depreciation expense Interest expense Equipment Long-term liabilities