Stevie Ltd Owns 100% of the Issued Ordinary Share Capital

Multiple Choice

Stevie Ltd owns 100% of the issued ordinary share capital of Wright Ltd.Wright Ltd has 100 million ordinary shares on issue.During the year ended 31 March 20X1, Wright Ltd declared and paid an interim dividend of $0.15 per share from post-acquisition profits.What is the elimination entry (if any) for this financial year?

A) $\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Dividend revenue } & 15000000 & \\\text { Interim dividend (retained profits) } & & 15000000\end{array}$
B) $\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit } \$ \\\text { Investment in Wright Ltd } & 15000000 & \\\text { Interim dividend (retained profits) } & & 15000000\end{array}$
C) $\begin{array} { l r c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Dividend revenue } & 1500000 & \\\text { Dividend expense } & & 1500000\end{array}$

D) No elimination entry is required because the dividend is a post-acquisition dividend