Fish Ltd Acquired an 80 Per Cent Interest in Chips

Fish Ltd acquired an 80 per cent interest in Chips Ltd on 1 July 2013 for a cash consideration of $838 000.At that date the fair value of the net assets of Chips Ltd was represented by: $$\begin{array} { | l | r | } \hline \text { Share capital } & 560000 \\\hline \text { Asset revaluation reserve } & 90000 \\\hline \text { Retained earnings } & \underline{360000} \\\hline & \underline{1010000} \\\hline\end{array}$$ On 30 June 2015 Fish Ltd sold all its shares in Chips Ltd for $950 000.At this date the fair value of the net assets of Chips Ltd was represented by:
$$\begin{array} { | l | r | } \hline \text { Share capital } & 560000 \\\hline \text { Asset revaluation reserve } & 120000 \\\hline \text { Retained earnings } & \underline { 490000 } \\\hline & \underline { 1170000 } \\\hline\end{array}$$ The retained earnings of $490 000 includes operating profit after tax of $90 000 from the current period.Impairment of goodwill was assessed at $6000,the impairment having been incurred evenly across the last two years.The investment has not been marked to market during the period that the shares were held.What is the elimination entry required for the consolidated accounts?

A)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Operating profit after tax } & 69600 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 29600 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 24000 & \\\hline \mathrm { Cr } & \text { Profit on sale of investment } & & 112000 \\\hline \mathrm { Cr } & \text { Profit on sale of subsidiary } & & 11200 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Profit on sale of investment } & 112000 & \\\hline \mathrm { Dr } & \text { Loss on sale of subsidiary } & 10000 & \\\hline \mathrm { Cr } & \text { Operating profit after tax } & & 69000 \\\hline \mathrm { Cr } & \text { Retained earnings } & & 29000 \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 24000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Operating profit after tax } & 69600 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 29600 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 24000 & \\\hline \mathrm { Dr } & \text { Loss on sale of subsidiary } & 18800 & \\\hline \mathrm { Cr } & \text { Profit on sale of investment } & & 142000 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Profit on sale of investment } & 142000 & \\\hline \mathrm { Cr } & \text { Profit on sale of subsidiary } & & 20000 \\\hline \mathrm { Cr } & \text { Operating profit after tax } & & 69000 \\\hline \mathrm { Cr } & \text { Retained earnings } & & 29000 \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 24000 \\\hline\end{array}$$