On September 30 20X7,Auction Ltd Acquired a 10% Interest in an Oil

On September 30 20X7,Auction Ltd acquired a 10% interest in an oil exploration joint venture operation,Deepwell Enterprises from Creeker Ltd at a cost of $3,000,000.At June 30 20X7,exploration had not yet reached the stage where an accurate evaluation of the area of interest could be made and each venturer had capitalised the expenditures incurred to that date in their own financial statements.For the year ended June 30 20X8,the financial statements of the UJV disclosed:
a.Net assets at July 1 20X7 $9,000,000 - sundry assets $10,000,000 less sundry liabilities $1,000,000.Up to that stage $25,000,000 had been spent on exploration.
B.Exploration expenditure to September 30 20X7 $4,000,000.
C.Net assets at September 30 20X7 $5,000,000 - sundry assets $6,000,000 less sundry liabilities $1,000,000.
D.Exploration expenditure October 1 20X7 to June 30 20X8 $20,000,000.
E.Cash contributions from venturers in the period October 1 20X7 to June 30 20X8 (in proportion to percentage interest held) $26,000,000.
F.Net assets at June 30 20X8 $11,000,000 - sundry assets of $13,000,000 less sundry liabilities of $2,000,000.Deferred exploration expenditure to June 30 20X8 $49,000,000.
At the date of acquisition,September 30 19X7,which of the following journal entries would be used by Auction Ltd to record the cost of acquiring the investment in Deepwell Enterprises?

A) Dr Sundry Assets $600,000,Dr Deferred Exploration Expenditure $2,500,000,Cr Sundry Liabilities $100,000 Cr Cash $3,000,000.
B) Dr Investment in UJV $3,000,000,Cr Cash $3,000,000.
C) Dr Deferred Exploration Expenditure $3,000,000,Cr Cash $3,000,000.
D) None of the above.