Kaye Company Acquired 100% of Fiore Company on January 1 $\begin{array}{l}\text { Retained earnings } &20\\\text { Investment in Fiore }&&20\end{array}$

Kaye Company acquired 100% of Fiore Company on January 1, 2013. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2013 and paid dividends of $100. Assume the partial equity method is used. In the years following acquisition, what additional worksheet entry must be made for consolidation purposes that is not required for the equity method?
A. $\begin{array}{l}\text { Retained earnings } &20\\\text { Investment in Fiore }&&20\end{array}$

B. $\begin{array}{l}\text { Investment in Fiore }&20 \\\text { Retained earnings }&&20\end{array}$

C. $\begin{array}{l}\text {Expenses }&20 \\\text { Investment in Fiore }&&20\end{array}$

D. $\begin{array}{ll}\text { Expenses } & 20 \\\quad \text { Retained earnings } &&20\end{array}$

E. $\begin{array}{l}\text { Retained earnings }&20 \\ \text { Additional paid-in capital }&&20\end{array}$

A) Entry A.
B) Entry B.
C) Entry C.
D) Entry D.
E) Entry E.