During 2020, Abernethy reported net income of $99,000 while declaring and paying dividends of $12,000. During 2021, Abernethy reported net income of $151,250 while declaring and paying dividends of $53,000.

Assume that Chapman Company acquired Abernethys common stock for $866,800 in cash. As of January 1, 2020, Abernethys land had a fair value of $110,900, its buildings were valued at $232,400, and its equipment was appraised at $418,250. Chapman uses the equity method for this 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.)

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 $ 51,500 $ 46,500 50,000 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 190,000 67,750 250,000 442,500 107,000 93,500 Land 166,500 448,250 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 Supplies Totals 19,000 $966,250 $ 966,250 During 2020, Abernethy reported net income of $99,000 while declaring and paying dividends of $12,000. During 2021, Abernethy reported net income of $151,250 while declaring and paying dividends of $53,000. Assume that Chapman Company acquired Abernethy's common stock for $866,800 in cash. As of January 1, 2020, Abernethy's land had a fair value of $110,900, its buildings were valued at $232,400, and its equipment was appraised at $418,250. Chapman uses the equity method for this investment