Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Debit Credit $ 56,400 $ 43,900 50,000 217,000 76,750 250,000 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 12/31/20) Retained earnings, 1/1/17 Supplies Totals 367,500 96,500 122,000 182,500 396,250 11,500 $935,150 $ 935,150 During 2017, Abernethy reported net income of $103,500 while declaring and paying dividends of $13,000. During 2018, Abernethy reported net income of $145,250 while declaring and paying dividends of $47,000. Assume that Chapman Company acquired Abernethy's common stock by paying $906,250 in cash. All of Abernethy's accounts are estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for its investment. Prepare the consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2 Prepare entry A to recognize goodwill portion of the original acquisition fair value. 3 Prepare entry I to eliminate intra-entity income accrual for the current year based on the parent's usage of the partial equity method. 4 Prepare entry D to eliminate intra-entity dividend transfers. 5 Prepare entry E. 10 Prepare entry D to eliminate Intra-entity dividend transfers. 11 Prepare entry E