Lillee Ltd Acquired 60% of the Issued Share Capital of Thompson

Lillee Ltd acquired 60% of the issued share capital of Thompson Ltd on 1 February 20X1.Thompson Ltd's shareholders equity (all at fair value) at that date was as follows:
$\begin{array}{llcc}&000s \\ \text { Paid up capital } &\$4000\\ \text { Retained profits } &\$1000\\ \text { Asset revaluation reserve } &\$2000\\\end{array}$


Lillee Ltd paid $8 000 000 for this acquisition.For the year ended June 30 20X1 $500 000 of goodwill impairment was recognised.For the 20X2 and 20X3 years no impairment was recognised.On June 30 20X3 the financial position was the same except that Thompson retained profits were $2 000 000.What is the balance sheet elimination entry for the goodwill impairment if consolidated financial statements were prepared on June 30 20X3? The partial method is used.

A) $\begin{array}{lrr}\text { Accounts } & \text { Debit } \$ \mathbf{0 0 0} & \text { Credit } \$ \mathbf{0 0 0} \\\text { Retained profits } & 500 & \\\text { Accumulated goodwill impairment } & & 500\end{array}$

B) $\begin{array} { l r r } \text { Accounts } & \text { Debit } \$ \mathbf { 0 0 0 } & \text { Credit } \$ \mathbf { 8 0 0 } \\\text { Impairment expense } & 500 & \\\text { Accumulated goodwill impairment } & & 500\end{array}$
C) $\begin{array} { l r r } \text { Accounts } & \text { Debit } \$ \mathbf { 0 0 0 } & \text { Credit } \$ \mathbf { 0 0 0 } \\\text { Retained profits } & 300 & \\\text { Accumulated goodwill impairment } & & 300\end{array}$
D) $\begin{array}{lrr}\text { Accounts } & \text { Debit } \$ \mathbf{0 0 0} & \text { Credit } \$ \mathbf{0 0 0} \\\text { Retained profits } & 300 & \\\text { Goodwill } & & 300\end{array}$