Chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2014. As of that date, Abernethy has the following trial balance:

	Debit			Credit
Accounts payable				$	57,300
Accounts receivable	$	42,200
Additional paid-in capital					50,000
Buildings (net) (4-year life)		214,000
Cash and short-term investments		82,250
Common stock					250,000
Equipment (net) (5-year life)		375,000
Inventory		90,500
Land		117,000
Long-term liabilities (mature 12/31/17)					170,000
Retained earnings, 1/1/14					409,650
Supplies		16,000
Totals	$	936,950		$	936,950

During 2014, Abernethy reported net income of $117,500 while declaring and paying dividends of $15,000. During 2015, Abernethy reported net income of $171,250 while declaring and paying dividends of $55,000.

Assume that Chapman Company acquired Abernethys common stock for $860,500 in cash. As of January 1, 2014, Abernethys land had a fair value of $132,000, its buildings were valued at $287,600, and its equipment was appraised at $352,500. Chapman uses the equity method for this investment.

Prepare consolidation worksheet entries for December 31, 2014, and December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) There should be ten entries and I solved the first few: Step 1. Common Stock 250,000.00 Additional Paid in capital 50,000.00 Retained earnings account 409,650.00 Stockholders Equity 709,650.00 Purchase Consideration 860,500.00 Less: Fvof net assets (709,650.00) Excess of purchase consideration over FV 150,850.00 Overvalued Land ( 132000-90500) (15,000.00) Undervalued Equipment (352500-375000) 22,500.00 Overvalued Buildings (287600-214000) (73,600.00) Remaining Attributed to goodwill 84,750.00 Overvalued Land ( 132000-90500) (15,000.00) Undervalued Equipment (352500-375000) 22,500.00 Overvalued Buildings (287600-214000) (73,600.00) Total Amount attributed to assets 18,650.00 Total excess of purchase considerations over Fari value 150,850.00 Less:Attributed to assets (18,650.00) Attributed to goodwill 169,500.00 Step 2. Overvlaued Land: - Undervalued Equipment (22,500 useful life of 5 years) (4,500.00) Overvalued Building (73600 uselful life 4 years) 18,400.00 Total Annual excess amortization 13,900.00 Step 3. Entry S For elininating thetotal of stockholders account of subsidiary company: Common Stock (abernathy) 250,000.00 Additional Paid in capital 50,000.00 Retained earnings account (1/1/14) 409,650.00 Investment in A. Co. 709,650.00 Step 4 The entry A will be passed to attribute the allocation of fair value to specific accounts at acquisition date. Land 15,000.00 Building 73,600.00 Goodwill 84,750.00 Equipment 22,500.00 Investment in A. Co. 84,750.00 150,850.00 173,350.00 173,350.00 Step 5. The entry I is passed by deiting equity in earnings of subsidiary company and eliminating the income accrual of $117,500 nd 13900 of amortization amount, and crediting the investment in A company Equity in earnings of subsidiary 103,600.00 Investment in A. Co. 103,600.00