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Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017 As of that date, Abernethy has the following trial balance Accounts payable
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017 As of that date, Abernethy has the following trial balance 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 12/31/20) Retained earnings, 1/1/17 Supplies Totals Debit Credit $ 55,800 $ 42,500 50,000 209,000 67,250 250,000 357,500 136,000 114,000 168,500 414,650 12,700 $938,950 $938,950 During 2017 Abernethy reported net income of $104,500 while declaring and paying dividends of $13,000. During 2018, Abernethy reported net income of $137,750 while declaring and paying dividends of $34,000 Assume that Chapman Company acquired Abernethy's common stock for $819 720 in cash. Assume that the equipment and long-term liabilities had fair values of $378,350 and $137,980, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment Consolidation Worksheet Entries Prepare entry E to recognize 2017 amortization expense. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries
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