Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Debit CreditAccounts payable $ 53,700Accounts receivable $ 41,000 Additional paid-in capital 50,000Buildings (net) (4-year remaining life) 184,000 Cash and short-term investments 77,250 Common stock 250,000Equipment (net) (5-year remaining life) 400,000 Inventory 117,500 Land 107,500 Long-term liabilities (mature 12/31/20) 173,000Retained earnings, 1/1/17 417,450Supplies 16,900 Totals $ 944,150 $ 944,150 During 2017, Abernethy reported net income of $98,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $128,250 while declaring and paying dividends of $39,000. Assume that Chapman Company acquired Abernethy's common stock for $825,690 in cash. Assume that the equipment and long-term liabilities had fair values of $422,400 and $139,760, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment. Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Return to question 16 6 December 31, 201 Common stock - Abernethy Additional paid-in capital 6.25 Retained earnings - 1/1/18 points Investment in Abernethy 7 December 31, 201 Dividend income X Dividends declared X Goodwill Equipment X edia Investment in Abernethy X book er 8 December 31, 201 No journal entry required X din Weather Channel 9 December 31, 201 Depreciation expense Interest expense Advisor Equipment Long-term liabilities Mc Graw Hill