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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: During 2020,

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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: During 2020, Abernethy reported net income of $86,000 while declaring and paying dividends of $11,000. During 2021, Abernethy reported net income of $124,500 while declaring and paying dividends of $47,000. Assume that Chapman Company acquired Abernethy's common stock for $691,000 in cash. As of January 1, 2020, Abernethy's land had a fair value of $118,100, its bulldings were valued at $231,000, and its equipment was appraised at $239,000. Chapman uses the equity method for this investment. Consolidation Worksheet Entries 3 4 Note: Enter debits before credits. Consolidation Worksheet Entries Note: Enter debits before credits. Consolidation Worksheet Entries For consolidation prepare entry I Note: Enter debits before credits. Consolidation Worksheet Entries 1 2 For consolidation prepare entry D Note: Enter debits before credits. Consolidation Worksheet Entries 1 2 3 4 Note: Enter debits before credits. On December 18,2020 , Stephanie Corporation acquired 100 percent of a Swiss company for 4.008 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00=CHF1. On December 18,2020 , the book and fair values of the subsidiary's assets and liabilities were as follows: Stephanie prepares consolidated financial statements on December 31,2020 . By that date, the Swiss franc has appreciated to $1.10=CHF1. Because of the year-end holidays, no transactions took place prior to consolidation. a. Determine the remeasurement gain or loss to be reported in Stephanie's 2020 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss? b. Not applicable

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