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 58,900 $ 41,500 50,000 211,000 70, 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 earnings, 1/1/20 Supplies Totals 430,000 139,000 121,500 174,000 498,450 17,600 $1,031,350 $1,031,350 During 2020, Abernethy reported net income of $120,000 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $170,000 while declaring and paying dividends of $48,000. Assume that Chapman Company acquired Abernethy's common stock for $902,200 in cash. As of January 1, 2020, Abernethy's land had a fair value of $133,000, its buildings were valued at $277,000, and its equipment was appraised at $393,500. 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 transaction list X: O Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 2 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 1 3 Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. 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 transfer Note: = journal entry has been entered 5 Prepare entry to eliminate intra-entity dividend transfers. 6 Prepare entry E to recognize current year amortization expense. 7 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. 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 Note : = journal entry has been entered 10 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. 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