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Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: DebitCredit Accounts

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance:

DebitCredit

Accounts payable$52,800

Accounts receivable$49,500

Additional paid-in capital50,000

Buildings (net) (4-yearremaining life)174,000

Cash and short-term investments84,000

Common stock250,000

Equipment (net) (5-year remaining life)315,000

Inventory137,500

Land90,500

Long-term liabilities (mature 12/31/23)188,500

Retained earnings, 1/1/20323,600

Supplies14,400

Totals$ 864,900$864,900

During 2020, Abernethy reported net income of $129,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $176,000 while declaring and paying dividends of $38,000.

Assume that Chapman Company acquired Abernethy's common stock for $733,100 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,000, its buildings were valued at $242,000, and its equipment was appraised at $279,500. 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.)

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