s 19 through 21 should be viewed as independent situations. They are based on the following data: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As that date, Abernethy has the following trial balance: Accounts payable... Accounts receivable. Additional paid-in capital.. Buildings (net) (4-year remaining life) Debit $ 40,000 Credit $ 50,000 50,000 120,000 60,000 Cash and short-term investments 250,000 Common stock 200,000 Equipment (net) (5-year remaining life) 90,000 Inventory. 80,000 Land.. Long-term liabilities (mature 12/31/23). 150,000 100,000 Retained earnings, 1/1/20. 10,000 Supplies $600,000 $600,000 Totals.. 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. 19. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2020, 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, 2020, and December 31, 2021. 20. 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. 21. Assume that Chapman 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 consoli dation worksheet entries for December 31, 2020, and December 31, 2021. 22 Adame Ina anaminas Claw Comomation on Januo 2000 Bately