Wellington Company purchased 100% of the ordinary shares of Royal Company on December 31, 2014. The cost of the investment was equal to the book value of the subsidiary's net assets. Selected account balances from the separate statements of financial position of Wellington and Royal on December 31, 2014 are as follows 
The consolidation worksheet eliminations at December 31, 2014 will include
A) a debit to Royal's plant assets, net account for £2,110,000.
B) a credit to Wellington's Investment in Royal account for £7,110,000.
C) a debit to Wellington's Share Capital account for £5,370,000.
D) a credit to Royal's Share Capital account for £5,110,000.
Correct Answer:
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