Questions 19-21 Problemin 19 through 21 should be viewed as independent situations. They are based on the following data: Chaprint Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that done. Abernethy has the following trial balance Debit Credit Accounts payable $ 50,00 Accounts receivable 540.000 Additional paid-ill capital 50,000 Buildings (net) (4-year remaining life) 120.000 Cash and short term investrets 60.000 Common stock 250,000 Equipment (het) (5 year remaining life! 200.000 Inventory 90.000 Land 30.000 Long-term liabilities mature 133/20) 150.000 Retained earnings, 100.000 Supplies 10.000 Totals S600.000 100.000 Durin 2017. Abernethy reported to income of 90,000 while declaring and poster dividends of $10.000. During 2018. Aberetly reported et scene of $110.000 while declaring and paying dividends of $30.000 LO) 19. Acome that Chapel Company acquired Abecretly's common stock for $490.000 cash. As of January 1, 2017. Abernethy's land had a fiir value of 590.000, to boildings were valued at $100,000 and equipment was uppened at $180.000. Clapeta nes the equity method for the weet. Prepare consolidation worksheet entries for December 31, 2017. und December 31, 2018 LO -30 20. Assume that Chapman Company acquired Abernethy's common stock for 5500,000 in cath. Axme that the equipment and long term bisbilities had fair values of $220.000 and $120.000 mnpectively, on the acquisition de Chapman unes the initial value method to account for its iveinment. Prepare comiolidation worksheet entries for December 31. 2017, and December 31, 2018 L0 3-369 21. Asute that Chapean Company acquired Abernethy's common stock by paying $520.000 in cash. All of Abernethy's accounts are estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for its investment, Prepare the consolidation worksheet entries for December 31, 2017. and December 31, 2018 Questions 19-21 Problemin 19 through 21 should be viewed as independent situations. They are based on the following data: Chaprint Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that done. Abernethy has the following trial balance Debit Credit Accounts payable $ 50,00 Accounts receivable 540.000 Additional paid-ill capital 50,000 Buildings (net) (4-year remaining life) 120.000 Cash and short term investrets 60.000 Common stock 250,000 Equipment (het) (5 year remaining life! 200.000 Inventory 90.000 Land 30.000 Long-term liabilities mature 133/20) 150.000 Retained earnings, 100.000 Supplies 10.000 Totals S600.000 100.000 Durin 2017. Abernethy reported to income of 90,000 while declaring and poster dividends of $10.000. During 2018. Aberetly reported et scene of $110.000 while declaring and paying dividends of $30.000 LO) 19. Acome that Chapel Company acquired Abecretly's common stock for $490.000 cash. As of January 1, 2017. Abernethy's land had a fiir value of 590.000, to boildings were valued at $100,000 and equipment was uppened at $180.000. Clapeta nes the equity method for the weet. Prepare consolidation worksheet entries for December 31, 2017. und December 31, 2018 LO -30 20. Assume that Chapman Company acquired Abernethy's common stock for 5500,000 in cath. Axme that the equipment and long term bisbilities had fair values of $220.000 and $120.000 mnpectively, on the acquisition de Chapman unes the initial value method to account for its iveinment. Prepare comiolidation worksheet entries for December 31. 2017, and December 31, 2018 L0 3-369 21. Asute that Chapean Company acquired Abernethy's common stock by paying $520.000 in cash. All of Abernethy's accounts are estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for its investment, Prepare the consolidation worksheet entries for December 31, 2017. and December 31, 2018
