Problem 3-20 (Static) (LO 3-3b) 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 $ 50,000 $ 40,000 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 Common stock Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 Supplies Totals 200,000 90,000 80,000 150,000 100,000 10,000 $600,000 $ 600,000 During 2020, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2021, 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 $500,000 in cash. Assume that the equipment and long- term liabilities had fair values of $220,000 and $120,000, 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.) Answer is not complete. Accounts No Date Debit Credit 1 250,000 December 31, 202 Common stock - Abernethy Additional paid-in capital Retained earnings 1/1/20 Investment in Abernethy 50,000 100,000 400,000 N December 31, 202. Land Buildings Goodwill Equipment Investment in Abernethy 10,000 30,000 60,000 16,000 84,000 3 74,000 December 31, 202 Equity in subsidiary earnings Investment in Abernethy 74,000 4 December 31, 202 Depreciation expense Equipment Buildings 6,000 4,000 10,000 6 250,000 December 31, 202 Common stock Abernethy Additional paid-in capital Retained earnings - 1/1/21 Investment in Abernethy 50,000 170,000 470,000 7 X December 31, 202 Land Buildings Goodwill Equipment Investment in Abernethy OX 10,000 > 30,000 60,000 16,000 84,000 8 104,000 December 31, 202 Equity in subsidiary earnings Investment in Abernethy 104,000 9 December 31, 202 Depreciation expense Equipment Buildings 6,000 4,000 X 10,000