On 1 July 2014,Horse Ltd Acquired 80 Per Cent of the Issued

On 1 July 2014,Horse Ltd acquired 80 per cent of the issued capital of Wagon Ltd for $785 000 when the fair value of the net assets of Wagon Ltd was $950 000 (share capital $800 000 and retained earnings $150 000) .On 30 June 2017 Horse Ltd purchased the final 20 per cent of Wagon's issued capital for $380 000.The net assets of Wagon Ltd were not stated at fair value in the accounts,which are summarised as follows: $$\begin{array} { | l | r | } \hline \text { Assets } & \\\hline \text { Cash } & 50500 \\\hline \text { Debtors } & 130000 \\\hline \text { Inventory } & 250000 \\\hline \text { Plant and equipment (net) } & 1200000 \\\hline \text { Land } & 769500 \\\hline \text { Liabilities } & \\\hline \text { Creditors } & 100000 \\\hline \text { Loans } & 500000 \\\hline \text { Shareholders' funds } & \\\hline \text { Share capital } & 800000 \\\hline \text { Retained earnings } & 1000000 \\\hline\end{array}$$ The fair value of the plant and equipment is $1 250 000 and the land was valued at $970 000 at year end.Impairment of goodwill was assessed at $7500,the impairment having been incurred evenly across the last three years.There were no intragroup transactions during the period.
What are the consolidation journal entries required for the period ended 30 June 2017?
(Ignore the tax effect of the revaluation.)

A)
$$\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Plant and equipment } & 50000 & \\\hline \mathrm { Dr } & \text { Land } & 200500 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 250500 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 800000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 50100 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 320000 & \\\hline \mathrm { Cr } & \text { Goodwill } & & 5100 \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 1165000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Goodwill impairment expense } & 7500 & \\\hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 7500 \\\hline\end{array}$$
B)
$$\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 640000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 120000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 25000 & \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 785000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Plant and equipment } & 50000 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 50000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 160000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 10000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 200000 & \\\hline \mathrm { Dr } & \text { Reserve in additional equity } & 10000 & \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 380000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Retained earnings beginning } & 5000 & \\\hline \mathrm { Dr } & \text { Goodwill impairment expense } & 2500 & \\\hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 7500 \\\hline\end{array}$$
C)
$$\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 640000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 120000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 25000 & \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 785000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 160000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 200000 & \\\hline \mathrm { Cr } & \text { Reserve in additional equity } & & 20000 \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 380000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Retained earnings beginning } & 5000 & \\\hline \mathrm { Dr } & \text { Goodwill impairment expense } & 2500 & \\\hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 7500 \\\hline\end{array}$$
D)
$$\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 640000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 120000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 25000 & \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 785000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Plant and equipment } & 50000 & \\\hline \mathrm { Dr } & \text { Land } & 200500 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 250500 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share capital } & 160000 & \\\hline \mathrm { Dr } & \text { Asset revaluation reserve } & 50100 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 200000 & \\\hline \mathrm { Cr } & \text { Reserve in additional equity } & & 30100 \\\hline \mathrm { Cr } & \text { Investment in Wagon Ltd } & & 380000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Retained earnings beginning } & 5000 & \\\hline \mathrm { Dr } & \text { Goodwill impairment expense } & 2500 & \\\hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 7500 \\\hline\end{array}$$