Chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Debit Credit During 2017, Abernethy reported net income of $98,500 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $132,250 while declaring and paying dividends of $48,000. Assume that Chapman Company acquired Abernethys common stock for $699,850 in cash. As of January 1, 2017, Abernethys land had a fair value of $141,400, its buildings were valued at $217,400, and its equipment was appraised at $217,500. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018.

	Debit			Credit
Accounts payable				$	59,500
Accounts receivable	$	46,600
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		145,000
Cash and short-term investments		84,250
Common stock					250,000
Equipment (net) (5-year remaining life)		257,500
Inventory		106,000
Land		129,000
Long-term liabilities (mature 12/31/20)					151,000
Retained earnings, 1/1/17					273,050
Supplies		15,200
Totals	$	783,550		$	783,550