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