Vader Ltd Acquired a 75 Per Cent Interest in Luke

Vader Ltd acquired a 75 per cent interest in Luke Ltd on 30 June 2012 for a cash consideration of €900 000.On the same date,Luke Ltd acquired a 60 per cent interest in Leia Ltd for a cash consideration of €600 000.The fair value of the net assets of each of the companies at acquisition is as follows: $\begin{array}{|l|r|r|}\hline & \text { Luke Ltd } & \text { Leia Ltd } \\\hline \text { Share capital } & 900000 & 800000 \\\hline \text { Retained earnings } & \underline{200000} & 100000 \\\hline & 1100000 & \underline{900000} \\\hline\end{array}$ Goodwill has been determined not to have been impaired.Using the multiple entity consolidation approach,what would the analysis of direct and indirect interests in the subsidiaries and the elimination entries be for the consolidation for 30 June 2012?

A) $$\begin{array} { | l | r | r | } \hline \text { Analysis of equity interests: } & \begin{array} { r } \text { Luke Ltd } \\\text { (\% interest) }\end{array} & \begin{array} { r } \text { Leia Ltd } \\\text { (\% interest) }\end{array} \\\hline \text { Vader Ltd's interest: } & & \\\hline \text { Direct } & 75 & 60\\\hline \text { Indirect } & & \\\hline & & \\\hline \text { Non-controlling interest: } & & \\\hline \text { Direct } & 25 & 40\\\hline \text { Indirect } & & \\\hline\end{array}$$ $$\begin{array} { | c | l | r | r | } \hline \text { Elimination entries: } & & \\\hline \text { Dr } & \text { Share capital } & 675000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 150000 & \\\hline \text { Dr } & \text { Goodwill } & 75000 & \\\hline \mathrm { Cr } & \text { Investment in Luke } & & 900000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 480000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 60000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 60000 & \\\hline \mathrm { Cr } & \text { lnvestment in Leia } & & 600000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Analysis of equity interests: } & \begin{array} { r } \text { Luke Ltd } \\\text { (\% interest) }\end{array} & \begin{array} { r } \text { Leia Ltd } \\\text { (\% interest) }\end{array} \\\hline \text { Vader Ltd's interest: } & & \\\hline \text { Direct } & 75 &60 \\\hline \text { Indirect } & & \\\hline & & \\\hline \text { Non-controlling interest: } & & \\\hline \text { Direct } & 25 &40 \\\hline \text { Indirect } & & \\\hline\end{array}$$ $$\begin{array} { | c | l | r | r | } \hline \text { Elimination entries: } & & \\\hline \text { Dr } & \text { Share capital } & 675000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 150000 & \\\hline \text { Dr } & \text { Goodwill } & 275000 & \\\hline \mathrm { Cr } & \text { Investment in Luke } & & 1100000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 480000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 60000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 360000 & \\\hline \mathrm { Cr } & \text { lnvestment in Leia } & & 900000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Analysis of equity interests: } & \begin{array} { r } \text { Luke Ltd } \\\text { (\% interest) }\end{array} & \begin{array} { r } \text { Leia Ltd } \\\text { (\% interest) }\end{array} \\\hline \text { Vader Ltd's interest: } & & \\\hline \text { Direct } & 75 & \\\hline \text { Indirect } & &45 \\\hline & & \\\hline \text { Non-controlling interest: } & & \\\hline \text { Direct } & 25 & 40 \\\hline \text { Indirect } & & 15 \\\hline\end{array}$$ $$\begin{array} { | c | l | r | r | } \hline \text { Elimination entries: } & & \\\hline \text { Dr } & \text { Share capital } & 675000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 150000 & \\\hline \text { Dr } & \text { Goodwill } & 75000 & \\\hline \mathrm { Cr } & \text { Investment in Luke } & & 900000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 480000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 60000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 60000 & \\\hline \mathrm { Cr } & \text { lnvestment in Leia } & & 600000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Analysis of equity interests: } & \begin{array} { r } \text { Luke Ltd } \\\text { (\% interest) }\end{array} & \begin{array} { r } \text { Leia Ltd } \\\text { (\% interest) }\end{array} \\\hline \text { Vader Ltd's interest: } & & \\\hline \text { Direct } & 75 & \\\hline \text { Indirect } & &45 \\\hline & & \\\hline \text { Non-controlling interest: } & & \\\hline \text { Direct } & 25 & 40 \\\hline \text { Indirect } & & 15 \\\hline\end{array}$$ $$\begin{array}{l}\text { Elimination entries: }\\\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Share capital } & 675000 & \\\hline \text { Dr } & \text { Retained earnings } & 150000 & \\\hline \text { Dr } & \text { Goodwill } & 75000 & \\\hline \mathrm { Cr } & \text { Investment in Luke } & & 900000 \\\hline & & & \\\hline \text { Dr } & \text { Share capital } & 360000 & \\\hline \text { Dr } & \text { Retained earnings } & 45000 & \\\hline \mathrm { Dr } & \text { Non-controlling interest } & 135000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 60000 & \\\hline \mathrm { Cr } & \text { Investment in Leia } & & 600000 \\\hline\end{array}\end{array}$$