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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

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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 Accounts payable $56,700 Accounts receivable $ 45,000 Additional paid-in capital 50,000 Duilding (net) (4-year remaining to) 165,000 Cash and short-term investments 80,250 Common stock 250,000 Riquipment (net) (5-year remaining ifo) 295,000 Inventory 110,500 Land 112,000 Long-tern abilities (nature 12/21/23) 171.000 Betained earningo, 1/1/20 260.750 tupple 11.900 Total 6706,450 $ 796,450 During 2020, Abernethy reported net income of $122,500 whille declaring and paying dividends of $15,000. During 2021, Abernethiy reported net income of $159,250 while declaring and paying dividends of $49,000 Assume that Chapman Company acquired Abernethy's common stock for $698,050 in cash. As of January 1, 2020, Abernathy's land had a fair value of $123,900, its buildings were valued at $219,400, and its equipment was appraised at $254,500. 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 fleld.) No Accounts Dobit Credit Dato December 31, 2020 1 No journal entry required 2 December 31, 2020 Common stock Abernathy Additional paid in capital Retained earnings--1/4/20 Investment in Abernethy 250,000 50,000 268,750 568,750 3 December 31, 2020 Land 11,900 76,400 Buildings Goodwill Equipment Investment in Abernethy 40,500 4 December 31, 2020 Equity in subsidiary oamings Investment in Abernethy 2 5 December 31. 2020 15.000 Investment in Abernethy Dividends declared 15,000 6 December 31, 2020 Depreciation expense Equipment Buildings 2 December 31, 2021 No journal entry required Buildings 7 December 31, No journal entry required 2021 8 December 31. 2021 Common stock-Abernethy Additional paid in capital Retained earnings---1/1/21 Investment in Abernethy 250,000 50,000 376,250 676,250 9 December 31 2021 Land Buildings Goodwill Equipment Investment in Abernathy 10 December 31, 2021 Equity in subsidiary earnings Investment in Abernethy 11 December 31, 2021 49,000 Investment in Abernethy Dividends declared 49,000 12 December 31 2021 Depreciation expenso Equipment Buildings

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