Chapman Company obtains 100 percent of the shares of Abernethy Company on January 1, 2014. As of that date, Abernethy has the following trial balance:

	Debit	Credit
Accounts payable		$51,900
accounts receivable	$43,100
Additional payment in principal		50,000
Buildings (net) (4 years of life)	175.000
Cash and short-term investments	75,500
Common actions		250.000
Equipment (net) (5 years of life)	439,500
Inventory	127,000
Tierra	116,500
Long-term liabilities (maturity 12/31/17)		170.500
Retained earnings, 1/1/14		464,900
supplies	10,700
Totals	$ 987,300	$ 987,300

During 2014, Abernethy reported net income of $87,000 while declaring and paying dividends of $11,000.

During 2015, Abernethy reported net income of $122,500 while declaring and paying dividends of $55,000.

Suppose the Chapman Company purchased Abernethy's common stock for $873,250 in cash. As of January 1, 2014, Abernethy's land had a fair value of $129,800, its buildings were valued at $243,800, and its equipment was valued at $403,750. Chapman uses the equity method for this investment.

Required

Prepare the consolidation adjustments for January 1, 2014.

Prepare the consolidation  adjustments for December 31, 2014.

Prepare the consolidation adjustments for December 31, 2015.