Saved Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that dete, Abernethy has the following trial balance: Credit 52,800 Debit Accounts payable Accountn 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 12/31/20) 49, 500 50,000 174,000 84,000 250,000 315,000 137,500 90,500 188,500 323, 600 Retained earning, 1/1/17 Bupplies 14,400 Totals $864,900 864,900 During 2017, Abernethy reported net income of $129,000 while declaring and paying dividends of $16,000. During 2018, Abernethy reported net income of $176,000 while declaring and paying dividends of $38,000. Assume that Chapman Company acquired Abernethy's common stock for $731,110 in cash. Assume that the equipment and long-term liabilities had fair values of $338,650 and $156,340, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment. Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries 7 8 9 :32 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Reoord ontry Clear entry vlew entries dnsacuo 4 X: 1 Prepare entry S to eliminate stockholders equity accounts of subsidiary. 02:54:54 2 Prepare entry A to recognize allocations determined above in connection with acquisition-date fair values. ry. 3 Prepare entry I to eliminate intra-entity dividend declarations recorded by parent as income. 4 Prepare entry E to recognize 2017 amortizat expense Cre 5 Prepare entry "C to convert parent company figures to equity method by recognizing subsidiary's increase in book value for prior year [$129,000 net income less $16,000 dividend declaration) and excess amortizations for that period Is12.7701. Note : O-journal entry has been entered Reoord entry Clear entry vlew Prepare entry S to eliminate beginning of year stockholders' equity accounts of subsidiary. The retained earnings balance has been adjusted for 2017 net income and dividends. 6 4:49 ry 7 Prepare entry A to recognize allocations relating to investment--balances shown here are as of the beginning of the current year [original allocation less excess amortizations for the prior period]. 8 Prepare entry I to eliminate intra-entity dividend declarations recorded by parent as income. 9 Prepare entry E to recognize 2018 amortization expense. Note: - journal entry has been entered Record entry