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 by paying $768,600 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.