chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2017. As of that date, Abernethy has the following trial balance:

	Debit			Credit
Accounts payable				$	51,500
Accounts receivable	$	46,500
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		190,000
Cash and short-term investments		67,750
Common stock					250,000
Equipment (net) (5-year remaining life)		442,500
Inventory		107,000
Land		93,500
Long-term liabilities (mature 12/31/20)					166,500
Retained earnings, 1/1/17					448,250
Supplies		19,000
Totals	$	966,250		$	966,250

During 2017, Abernethy reported net income of $99,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $151,250 while declaring and paying dividends of $53,000.

Assume that Chapman Company acquired Abernethys common stock for $855,330 in cash. Assume that the equipment and long-term liabilities had fair values of $464,600 and $134,620, respectively, on the acquisition date. Chapman uses the initial value method to account for its 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 field.)

a) Prepare entry S to eliminate stockholders' equity accounts of subsidiary

(b) Prepare entry A to recognize allocations determined above in connection with acquisition date fair values (c) prepare entry I to eliminate intra-entity dividend declarations recorded by parent as income (d) Prepare entry E to recognize current year amortization expense e) prepare entry C* to convert parent company figures to equity method by recognizing subsidiary increase in book value for prior year (99,000 net income less 12,000 dividend declaration) and excess amortizations for that period 12,390) (f) Prepare entry S to eliminate beginning stockholders' equity of subsidiary - the retained earnings account has been adjusted for 2017 income and dividends. Entry *C is not needed because equity method was applied. (g) Prepare entry A to recognize allocations relating to investment - balances shown here are as of beginning current year (original allocation less excess amortizations for the prior period). (h) Prepare entry I to eliminate intra-entity dividend declarations by parent as income

(i) Prepare entry E to recognize 2018 amortization expenses

(j) Prepare entry E to recognize current year amortization expense