Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Credit $ 58,300 $ 43,500 50,000 210,000 Cash and short-term investments 83,250 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 417,500 95,000 Land 103,000 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 163,000 445,850 Supplies Totals 14,900 $967,150 $ 967,150 During 2020, Abernethy reported net income of $122,000 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $175,000 while declaring and paying dividends of $55,000. Assume that Chapman Company acquired Abernethy's common stock for $854,460 in cash. Assume that the equipment and long- term liabilities had fair values of $440,150 and $131,640, 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.) No 1 3 Date > Answer is not complete. December 31, 202 Common stock-Chapman Additional paid-in capital Retained earnings-1/1/20 Investment in Abernethy December 31, 202 Investment in Abernethy Dividends declared Accounts Debit Credit 250,000 > > 50,000 445,850 745,850 15,000 15,000 4 December 31, 202 Depreciation expense 13,750 X Equipment 5,150 x Buildings 18,900 6 December 31, 202 Common stock-Chapman 250,000 Additional paid-in capital 50,000 Retained earnings-1/1/20 445,850 Investment in Abernethy 745,850 X 8 December 31, 202 Investment in Abernethy Dividends declared 55,000 55,000 9 December 31, 202 Depreciation expense Equipment Buildings 13,750 x 5,150 x 18,900 Consolidation Worksheet Entries < 1 2 3 4 5 6 7 8 9 Prepare entry A to recognize allocations in connection with acquisition-date fair values. Note: Enter debits before credits. Date December 31, 2020 Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 1 2 4 5 6 7 Prepare entry *C to convert parent company figures to equity method. Note: Enter debits before credits. Date December 31, 2021 Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 1 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 Record entry Clear entry view consolidation entries