Dolly Ltd acquired a 60 per cent interest in Vardon Ltd on 1 July 2012 for a cash consideration of $1 300 000.At that date fair value of the net assets of Vardon Ltd were represented by:

\begin{array} { | l | r | } \hline \text { Share capital } & 1020000 \\\hline \text { Asset revaluation reserve } & 150000 \\\hline \text { Retained earnings } & \underline { 980000 } \\\hline & \underline { 2150000 } \\\hline\end{array}

On 1 July 2014 Dolly Ltd purchased the final 40 per cent of the issued capital of Vardon Ltd for cash consideration of $950 000.At this date the fair value of the net assets of Vardon Ltd were represented by:

\begin{array} { | l | r | } \hline \text { Share capital } & 1020000 \\\hline \text { Asset revaluation reserve } & 280000 \\\hline \text { Retained earnings } & \underline { 1050000 } \\\hline & \underline { 2350000 } \\\hline\end{array}

Impairment of goodwill was assessed at $3000,of which $2000 related to the year ended 30 June 2015.There were no intragroup transactions.What are the consolidation entries to eliminate the investment in the subsidiary and amortise goodwill for the period ended 30 June 2016?
A)

\begin{array}{l}\text { Elimination and impairment entries: }\\\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 1020000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 280000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 1050000 & \\\hline \mathrm { Cr } & \text { Discount } & & 100000 \\\hline \mathrm { Cr } & \text { Investment in Vardon Ltd } & & 2250000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Discount } & 100000 & \\\hline \mathrm { Cr } & \text { Non-monetary assets } & & 100000 \\\hline\end{array}\end{array}

\text { Elimination and impairment entries: } \\\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 612000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 90000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 588000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 10000 & \\\hline \mathrm { Cr } & \text { Investment in Vardon Ltd } & & 1300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 408000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 112000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 420000 & \\\hline \mathrm { Dr } & \text { Reserve in additional equity } & 10000 & \\\hline \mathrm { Cr } & \text { Investment in Vardon Ltd } & & 950000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Retained earnings beginning } & 2000 & \\\hline \mathrm { Dr } & \text { Goodwill impairment expense } & 1000 & \\\hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 3000 \\\hline\end{array}

\text { Elimination and impairment entries: }\\\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 612000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 588000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 100000 & \\\hline \mathrm { Cr } & \text { Investment in Vardon Ltd } & & 1300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 408000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 112000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 420000 & \\\hline \mathrm { Cr } & \text { Investment in Vardon Ltd } & & 940000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Non-monetary assets } & 10000 & \\\hline \mathrm { Cr } & \text { Investment in Vardon Ltd } & & 10000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Retained earnings beginning } & 2000 & \\\hline \mathrm { Dr } & \text { Goodwill impairment expense } & 1000 & \\\hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 3000 \\\hline\end{array}

\text { Elimination and impairment entries: } \\\begin{array}{|r|l|r|r|}\hline \mathrm{Dr} & \text { Share capital } & 408000 & \\\hline \mathrm{Dr} & \text { Asset revaluation reserve } & 112000 & \\\hline \mathrm{Dr} & \text { Retained earnings } & 420000 & \\\hline \mathrm{Cr} & \text { Investment in Vardon Ltd } & & 940000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Non-monetary assets } & 10000 & \\\hline \mathrm{Cr} & \text { Investment in Vardon Ltd } & & 10000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Retained earnings beginning } & 2000 & \\\hline \mathrm{Dr} & \text { Goodwill impairment expense } & 1000 & \\\hline \mathrm{Cr} & \text { Accumulated impairment losses-goodwill } & & 3000 \\\hline\end{array}

Any Difference Between Fair Value Paid and the Carrying Amount

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