Radio Ltd Acquired All the Issued Capital of Wave Ltd

Radio Ltd acquired all the issued capital of Wave Ltd on 1 July 2014 for cash consideration of $2 million.The fair value of the net assets of Wave Ltd at that date was $1.8 million as follows: $$\begin{array} { | l | r | } \hline \text { Share capital } & \$ 1000000 \\\hline \text { Retained earnings } & \underline{800000} \\\hline \text { Total equity } & \underline{\$ 1800000} \\\hline\end{array}$$ During the period ending 30 June 2015,Wave Ltd declare a dividend of $300 000 that is identified as being paid out of pre-acquisition profits.Goodwill had been determined to have impaired by $20 000 during the period.What consolidation journal entries would be required to prepare group accounts for the period ended 30 June 2015?

A)
$$\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 1000000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 500000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 500000 & \\\hline \mathrm { Cr } & \text { Investment in Wave Ltd } & & 2000000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Impairment loss } & 250000 & \\\hline \mathrm { Cr } & \text { Accumulated impairment loss } & & 250000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 300000 & \\\hline \mathrm { Cr } & \text { Investment in Wave Ltd } & & 300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend declared } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 300000 \\\hline\end{array}$$
B)
$$\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 1000000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 800000 & \\\hline \mathrm { Cr } & \text { Investment in Wave Ltd } & & 1800000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Retained earnings } & 20000 & \\\hline \mathrm { Cr } & \text { Accumulated impairment loss } & & 20000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend declared } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend income } & & 300000 \\\hline\end{array}$$
C)
$$\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 1000000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 500000 & \\\hline \mathrm { Cr } & \text { Investment in Wave Ltd } & & 1500000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Impairment loss } & 20000 & \\\hline \mathrm { Cr } & \text { Retained earnings } & & 20000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend declared } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend income } & & 300000 \\\hline\end{array}$$
D)
$$\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Share capital } & 1000000 & \\\hline \mathrm { Dr } & \text { Retained earnings } & 800000 & \\\hline \mathrm { Dr } & \text { Goodwill } & 200000 & \\\hline \mathrm { Cr } & \text { Investment in Wave Ltd } & & 2000000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Impairment loss -goodwill } & 20000 & \\\hline \mathrm { Cr } & \text { Accumulated impairment loss-goodwill } & & 20000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend payable } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend receivable } & & 300000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Dividend declared } & 300000 & \\\hline \mathrm { Cr } & \text { Dividend income } & & 300000 \\\hline\end{array}$$