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				$	59,300
Accounts receivable	$	44,300
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		137,000
Cash and short-term investments		73,750
Common stock					250,000
Equipment (net) (5-year remaining life)		262,500
Inventory		126,500
Land		100,500
Long-term liabilities (mature 12/31/20)					176,000
Retained earnings, 1/1/17					227,850
Supplies		18,600
Totals	$	763,150		$	763,150

During 2017, Abernethy reported net income of $96,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $141,000 while declaring and paying dividends of $45,000.

Assume that Chapman Company acquired Abernethys common stock for $651,300 in cash. As of January 1, 2017, Abernethys land had a fair value of $111,300, its buildings were valued at $199,400, and its equipment was appraised at $233,500. 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 field.)

1. Prepare entry S to eliminate stockholders equity accounts of subsidiary

2. prepare entry A to recognize allocations attributed to fai value of specifi accounts at acquition date with residual fair value recognized as good will

3. prepare entry I to eliminate $96,000 income accural for 2017 less $9,800 amortization recorded by parent using equity method

4. prepare entry D to eliminate intra-entity dividend transfers

5. prepare entry E to recognize current year amortization

6. 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

7. prepare entry A to recognize allocations relating to investment- balances shown here are as of behinning of current year

8. prepare entry I to eliminate $141,000 income accural less $9,800 amortization recorded by parent during 2018 using equity method

9. prepare entry D to eliminate intra-entity dvidend transfers

10. prepare entry E to recognize current year amortization expense