Hammer Ltd Acquired All the Issued Capital of Nail Ltd

Hammer Ltd acquired all the issued capital of Nail Ltd on 1 July 2015 for cash consideration of $1.5 million.The fair value of the net assets of Nail Ltd at that date was $1.2 million as follows: $\begin{array}{|l|r|}\hline \text { Share capital } & \$ 1000000 \\\hline \text { Retained earnings } & 200000 \\\hline \text { Total equity } & \$ 1200000 \\\hline\end{array}$ During the period ended 30 June 2016,Nail Ltd declared a dividend of $200 000 that is identified as being paid out of pre-acquisition profits and a further $100 000 is declared at the end of the period that is out of post-acquisition profits.Goodwill had been determined to have been impaired by $15 000 during the period.What consolidation journal entries would be required to prepare group accounts for the period ended 30 June 2016?

A) $\begin{array}{|l|l|r|l|}\hline \text { Dr } & \text { Share capital } & 1000000 & \\\hline \text { Dr } & \text { Goodwill } & 300000 & \\\hline \mathrm{Cr} & \text { Investment in Nail Ltd } & & 1300000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Impairment loss } & 15000 & \\\hline \mathrm{Cr} & \text { Accumulated impairment loss } & & 15000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Dividend payable } & 200000 & \\\hline \mathrm{Cr} & \text { Dividend receivable } & & 200000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Dividend income } & 100000 & \\\hline \mathrm{Cr} & \text { Dividend receivable } & & 100000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Dividend payable } & 100000 & \\\hline \mathrm{Cr} & \text { Dividend declared } & & 100000 \\\hline\end{array}$
B) $\begin{array}{|l|l|r|l|}\hline \mathrm{Dr} & \text { Share capital } & 1000000 & \\\hline \mathrm{Dr} & \text { Retained earnings } & 200000 & \\\hline \mathrm{Dr} & \text { Goodwill } & 300000 & \\\hline \mathrm{Cr} & \text { Investment in Nail Ltd } & & 1520000\\\hline\\ \hline \mathrm{Dr} & \text { Impairment loss -goodwill } & 15000 & \\\hline \mathrm{Cr} & \text { Accumulated impairment loss- goodwill } & & 15000 \\\hline\\\hline \mathrm{Dr} & \text { Impairment loss-goodwill } & 15000 & \\\hline \mathrm{Cr} & \text { Accumulated impairment loss-goodwill } & & 15000 \\\hline \\\hline \mathrm{Dr} & \text { Dividend payable } & 200000 & \\\hline \mathrm{Cr} & \text { Dividend receivable } & & 200000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Dividend income } & 200000 & \\\hline \mathrm{Cr} & \text { Dividend declared } & & 200000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Dividend payable } & 100000 & \\\hline \mathrm{Cr} & \text { Dividend receivable } & & 100000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Dividend income } & 100000 & \\\hline \mathrm{Cr} & \text { Dividend declared }&& 100000 \\\hline \end{array}$

C) $$\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Share capital } & 1000000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 100000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 400000 & \\\hline \mathrm { Cr } & \text { Investment in Nail Ltd } & & 1500000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Impairment loss } & 20000 & \\\hline \mathrm { Cr } & \text { Accumulated impairment loss } & & 20000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 200000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 200000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 100000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 100000 \\\hline\end{array}$$
D) $$\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Share capital } & 1000000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 500000 & \\\hline \mathrm { Cr } & \text { Investment in Nail Ltd } & & 1500000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Goodwill impairment (expense) } & 15000 & \\\hline \mathrm { Cr } & \text { Goodwill } & & 15000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend income } & 100000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 100000 \\\hline\end{array}$$