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				$	58,900
Accounts receivable	$	41,500
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		211,000
Cash and short-term investments		70,750
Common stock					250,000
Equipment (net) (5-year remaining life)		430,000
Inventory		139,000
Land		121,500
Long-term liabilities (mature 12/31/23)					174,000
Retained earnings, 1/1/20					498,450
Supplies		17,600
Totals	$	1,031,350		$	1,031,350

During 2020, Abernethy reported net income of $120,000 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $170,000 while declaring and paying dividends of $48,000.

Assume that Chapman Company acquired Abernethys common stock for $902,200 in cash. As of January 1, 2020, Abernethys land had a fair value of $133,000, its buildings were valued at $277,000, and its equipment was appraised at $393,500. 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.)

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

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

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

Prepare entry D to eliminate intra-entity dividend transfers

Prepare entry E to recognize current year amortization expense.

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

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

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

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

Prepare entry D to eliminate intra-entity dividend transfers.

Prepare entry E to recognize current year amortization expense.