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 $ 55,300 $ 45,800 50,000 197,000 81,500 250,000 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 345,000 124,500 125,000 176,500 402,900 15,900 $934,700 $ 934,700 During 2017, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2018, Abernethy reported net income of $167,750 while declaring and paying dividends of $41,000. Assume that Chapman Company acquired Abernethy's common stock for $819,850 in cash. As of January 1, 2017, Abernethy's land had a fair value of $141,900, its buildings were valued at $251,800, and its equipment was appraised AAA- During 2017, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2018, Abernethy reported net income of $167,750 while declaring and paying dividends of $41,000. Assume that Chapman Company acquired Abernethy's common stock for $819,850 in cash. As of January 1, 2017, Abernethy's land had a fair value of $141,900, its buildings were valued at $251,800, and its equipment was appraised at $306,750. Chapman uses the equity method for this investment. Prepare 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 fleld.) view transaction list Consolidation Worksheet Entries 2 3 4 5 6 7 8 9 10 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2 8 9 10 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation 4 5 6 7 8 9 10 Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. Note: Enter debits before credits. Accounts Debit Credi Date December 31, 2017 Record entry Clear entry view consolidation 10 Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date Accounts Debit Debit Credit December 31, 2018 Record entry Clear entry view consolidation Prepare entry E to recognize current year amortization expense. Note: Enter debits before credits. Date Accounts Debit Cre December 31, 2018 Record entry Clear entry view consolidation