Rose Ltd Acquired All the Equity of Jeannie Ltd on 1

Multiple Choice

Rose Ltd acquired all the equity of Jeannie Ltd on 1 July 20X3.At that time the fair value/financial position of Jeannie was as follows:
$$\begin{array} { l r } \text { Capital } & \$ 500000 \\\text { Reserves } & \$ 100000 \\\text { Retained profits } & \$ 150000 \\\text { Liabilities } & \$ 50000\end{array}$$
Suppose that Rose paid $500 000 for the shares in Jeanie, which of the following correctly describes the accounting procedures that will arise as a result of the business combination?

A) The Rose Group will record a goodwill asset of $250 000 on its consolidation worksheet if prepared as at 1 July 20X3
B) Rose Ltd will record an impairment expense of $250 000 in its ledger
C) The Rose Group will record a bargain purchase revenue of $250 000 on its consolidation worksheet if prepared as at 1 July 20X3
D) None of the above are appropriate