Ajax Company acquired all of the capital stock of Delroy Company on January 1, 19x8, for an amount $40,000 less than book value. The amount of $10,000 of the excess of book value over purchase price was attributable to the overvaluation of equipment. The balance sheet of Delroy Company on January 1, 19x8, showed the following asset account balances:

Cash $100,000

Accounts Receivable 100,000

Land 50,000

Building (Net) 150,000

Equipment (Net) 110,000

$510,000

On a consolidating work sheet prepared as of January 1, 19x8, which one of the following elimination entries would be made after providing an elimination for the equipment overvaluation?

A. Excess of Book Value Over

Purchase Price 30,000

Cash 6,000

Accounts Receivable 6,000

Land 3,000

Building (Net) 9,000

Equipment (Net) 6,000

B. Cash 6,000

Accounts Receivable 6,000

Land 3,000

Building (Net) 9,000

Equipment (Net) 6,000

Excess of Book Value Over

Purchase Price 30,000

c. Excess of Book Value Over

Purchase Price 30,000

Land 5,000

Building (Net) 15,000

Equipment (Net) 10,000

D. Land 5,000

Building (Net) 15,000

Equipment (Net) 10,000

Excess of Book Value Over

Purchase Price 30,000