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 Credit $ 55,100 $ 44,700 50,000 163,000 83,750 250,000 Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/23) Retained ear gs, 1/1/20 Supplies Totals 207,500 122,000 85,500 162,500 202,150 13,300 $719,750 $ 719,750 During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $136,750 while declaring and paying dividends of $36,000. Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164,500. 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.) During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $136,750 while declaring and paying dividends of $36,000. Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164,500. 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.) view transaction list X: 1 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 12 > 2 Prepare entry s to eliminate stockholders' equity accounts of subsidiary. GUI 3 Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. Credit 4 Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. 5 Prepare entry D to eliminate intra-entity dividend transfers. Note := journal entry has been entered Record entry Clear entry view consolidation entries view transaction list x 6 Prepare entry E to recognize current year amortization expense. 12 > 7 ull Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 8 Prepare entry s to eliminate stockholders' equity accounts of subsidiary for 2021. Credit 9 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. 10 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note : = journal entry has been entered Record entry Clear entry view consolidation entries x 8 Prepare entry s to eliminate stockholders' equity accounts of subsidiary for 2021. 12 > 9 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. 10 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Credit 11 Prepare entry D to eliminate intra-entity dividend transfers. 12 Prepare entry E to recognize current year amortization expense. Note : = journal entry has been entered Record entry Clear entry view consolidation entries