Parent Limited Acquired 100% of a Subsidiary on 1 July

Multiple Choice

Parent Limited acquired 100% of a subsidiary on 1 July 20X7.At acquisition date the subsidiary had the following equity items:
-Retained earnings $24 000
-Share capital $33 000
-Business combination revaluation reserve $10 000
In the year following the acquisition the subsidiary paid a bonus dividend of $14 000 out of pre-acquisition retained earnings.The following consolidation adjustment is needed in the consolidation worksheet for 30 June 20X8:

A) DR Share capital $14 000 CR Bonus dividend paid $14 000
B) DR Shares in subsidiary 14 000 CR Share capital $14 000
C) DR Bonus dividend paid $14 000 CR Retained earnings $14 000
D) DR Retained earnings $14 000 CR Share capital $14 000.