On 1 January 2017, East Ltd completed a successful acquisition for West Ltd. All the net assets of West Ltd were at fair value except for an equipment, which was recorded at $300,000 below fair value. The remaining useful life of the equipment is 15 years.

At 30 June 2022, the consolidation adjustment to record depreciation of the revalued equipment is:

Group of answer choices

Dr Retained earnings $70,000; Dr Depreciation expense $20,000; Cr Accumulated depreciation $90,000

Dr Retained earnings $90,000; Dr Depreciation expense $20,000; Cr accumulated depreciation $110,000

Dr Retained earnings $90,000; Dr Depreciation expense $30,000; Cr Accumulated depreciation $120,000

Dr Retained earnings $100,000; Dr Depreciation expense $20,000; Cr Accumulated depreciation $120,000