On 1 July 2012,Goliath Ltd Acquires All Shares in David

On 1 July 2012,Goliath Ltd acquires all shares in David Ltd for $800 000.The fair value of net assets acquired is $920 000 comprised of $600 000 in share capital and $320 000 in retained earnings.What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 10 Consolidated Financial Statements?

A)
$$\begin{array} { | l | l | r | r | } \hline & & ( \$ 000 ) & ( \$ 000 ) \\\hline \mathrm { Dr } & \text { Investment in subsidiary } & 800 & \\\hline \mathrm { Dr } & \text { Goodwill } & 120 & \\\hline \mathrm { Cr } & \text { Share capital } & & 600 \\\hline \mathrm { Cr } & \text { Retained earnings } & & 320 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | r | r | } \hline & & ( \$ 000 ) & ( \$ 000 ) \\\hline \mathrm { Dr } & \text { Investment in subsidiary } & 800 & \\\hline \mathrm { Dr } & \text { Gain on bargain purchase } & 120 & \\\hline \mathrm { Cr } & \text { Share capital } & & 600 \\\hline \mathrm { Cr } & \text { Retained earnings } & & 320 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | r | r | } \hline & & ( \$ 000 ) & ( \$ 000 ) \\\hline \mathrm { Dr } & \text { Share capital } & 600 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 320 & \\\hline \mathrm { Cr } & \text { Gain on bargain purchase } & & 120 \\\hline \mathrm { Cr } & \text { Investment in subsidiary } & & 800 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline & & ( \$ 000 ) & ( \$ 000 ) \\\hline \mathrm { Dr } & \text { Share capital } & 600 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 320 & \\\hline \mathrm { Cr } & \text { Goodwill } & & 120 \\\hline \mathrm { Cr } & \text { Investment in subsidiary } & & 800 \\\hline\end{array}$$

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