Check my work Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit $ Credit 58,900 $ 41,500 50,000 211,000 70,750 250,000 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 12/31/23) Retained earnings, 1/1/20 Supplies Totals 430,000 139,000 121,500 174,000 498,450 17,600 $1,031,350 $1,031,350 During 2020, Abernethy reported net income of $120,000 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $170,000 while declaring and paying dividends of $48,000. Assume that Chapman Company acquired Abernethy's common stock for $907,300 in cash. Assume that the equipment and long- Check my world Assume that Chapman Company acquired Abernethy's common stock for $907,300 in cash. Assume that the equipment and long term liabilities had fair values of $451,050 and $143.600, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list No Accounts Debit Credit Date December 31 2020 1 Common stock -Abernethy Additional paid-in capital Retained earings-1/1/20 Investment in Abernethy 250,000 50,000 498,450 798,450 2 December 31 2020 Land 11,500 52,750 Buildings Goodwill Equipment 2017 Next > view transaction list transaction list Debit Prepare entry s to eliminate stockholders' equity accounts of subsidiary. 250,000 50,000 498,450 798,450 2 Prepare entry A to recognize allocations in connection with acquisition-date fair values. 11,500 3 Prepare entry I to eliminate intra-entity dividends. 52,750 4 Prepare entry E to recognize 2020 amortization expense. 5 Prepare entry *C to convert parent company figures to equity method. 6 Prepare entry s to eliminate stockholders' equity accounts of subsidiary for 2021. Note: = journal entry has been entered