New Ltd Acquired All the Issued Share Capital of Orleans

New Ltd acquired all the issued share capital of Orleans Ltd on 1 February 20X1.Orleans Ltd's shareholders equity (all at fair value) at that date was as follows:
$\begin{array}{llcc}& \text {000s } & \\ \text {Paid up capital } &\$4000\\ \text {Retained profits } &\$1000\\ \text { Asset revaluation reserve } &\$2000\\\end{array}$


If New Ltd paid $8 000 000 for this acquisition what is the substitution elimination entry if consolidated financial statements were prepared on 1 February 20X1?

A) $\begin{array} { l r r } \text { Accounts } & \text { Debit } \mathbf { \$ 0 0 0 } & \text { Credit } \$ \mathbf { 0 0 0 } \\\text { Paid up capital } & 4000 \\\text { Retained profits } & 1000 \\\text { Asset revaluation reserve } & 2000 \\\text { Goodwill } & 1000\end{array}$
B) $\begin{array} { l r r } \text { Accounts } & \text { Debit } \$ \mathbf { 0 0 0 } & \text { Credit } \$ \mathbf { 0 0 0 } \\\text { Paid up capital } & 4000 & \\\text { Retained profits } & 1000 & \\\text { Asset revaluation reserve } & 2000 & \\\text { Goodwill } & 1000 & \\\text { Investment in Orleans Ltd } & & 8000\end{array}$
C) $\begin{array} { l r r } \text { Accounts } & \text { Debit } \$ \mathbf { 0 0 0 } & \text { Credit } \$ \mathbf { 0 0 0 } \\\text { Paid up capital } & 4000 & \\\text { Retained profits } & 1000 & \\\text { Asset revaluation reserve } & 2000 & \\\text { Investment in Orleans Ltd } & &7000\end{array}$

D) $\begin{array}{lrr}\text { Accounts } & \text { Debit } \$ \mathbf{0 0 0} & \text { Credit } \$ \mathbf{0 0 0} \\\text { Paid up capital } & 4000 & \\\text { Retained profits } & 1000 & \\\text { Asset revaluation reserve } & 2000 & \\\text { Acquisition expense } & 1000 & \\\text { Bank } & & 8000\end{array}$