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Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2009

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2009

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2009. As of that date, Abernethy has the following trial balance: During 2009,
Abernethy reported income of $80,000 while paying dividends of $10,000. During 2010, Abernethy reported income of $110,000 while paying dividends of $30,000. 17.
Assume that Chapman Company acquired Abernethy’s common stock for $490,000 in cash. As of January 1, 2009, 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, 2009, and December 31, 2010. (Hoyle 126) Hoyle, Joe Ben. Fundamentals of Advanced Accounting with Dynamic Accounting PowerWeband CPA
Success SG Coupon, 3rd Edition. McGraw-Hill Learning Solutions, 2009. .

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