Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $450,000 in cash and issued 104,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit. The following reports the fair values for the Beltran reporting unit for January 1, 2017, and December 31, 2018, along with their respective book values on December 31, 2018, Beltran Reporting Unit Receivables Inventory Patents Customer relationships Equipment (net) Goodwill Accounts payable Long-term liabilities Fair Values 1/1/12 $ 75,000 193,000 281,000 525,000 500,000 295,000 ? (121,000) (450,000) Fair Values 12/31/18 $ 50,000 225,000 305,000 600,000 480,000 240,000 > (175,000) (400,000) Book Values 12/31/18 $50,000 225,000 300,00 500,000 450,000 235,000 400,000 (175,000) (400,000) a. Prepare Francisco's journal entry to record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2017 b. FROM DR. WEBB- "INDEPENDENT OF PART A, IF THE PROBLEM ASKS YOU FOR GOODWILL IMPAIRMENT IN PART B, PUT THE NUMBER 300,000." Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date. Abernethy has the following trial balance: Debit $ Credit 50,000 $ 40,00 50,000 120,000 60,000 250,000 Accounts payable Accounts receivable Additional paid in capital Buildings (net) (4-year remaining life) Cash and short-term investments Connon stock Equipment (net) (5-year remaining life) Inventory Land Long term liabilities (mature 12/31/20) Retained earnings, 1/1/17 Supplies Totals 200,000 90,000 80,000 150,000 100,000 10,000 $600,000 $ 600,000 During 2017, Abernethy reported net income of $80,000 while declaring and paying dividends of $10.000. During 2018. Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2017. Abernethy's land had a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000. Chapman uses the equity method for this investment Prepare consolidation worksheet entries for December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)