Chapman company obtains 100 percent of abernethy company’s stock on january 1, 2017. as of that date, abernethy has the following trial balance: debit credit accounts payable $ 52,800 accounts receivable $ 49,500 additional paid-in capital 50,000 buildings (net) (4-year remaining life) 174,000 cash and short-term investments 84,000 common stock 250,000 equipment (net) (5-year remaining life) 315,000 inventory 137,500 land 90,500 long-term liabilities (mature 12/31/20) 188,500 retained earnings, 1/1/17 323,600 supplies 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 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. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Interpreting the income tax expense footnote the income tax footnote to the financial statements of fedex corporation follows. the components of the provision for income taxes for the years ended may 31 were as follows: ($ millions) 2010 2009 2008 current provision domestic federal $ 36 $ (35) $ 514 state and local 54 18 74 foreign 207 214 242 297 197 830 deferred provisions (benefit) domestic federal 408 327 31 state and local 15 48 (2) foreign (10) 7 32 413 382 61 provision for income taxes $ 710 $ 579 $ 891 (a)what is the amount of income tax expense reported in fedex's 2010, 2009, and 2008 income statements?