On 1 July 2021, Valpadana Limited acquired all the issued shares in Goldini Limited. At that date, the buildings of Goldini Limited had a fair value of $20 000 more than its carrying amount in Goldini Limited's financial statements. At acquisition date, the buildings in Goldini Limited's Financial statements were with a historical cost of $150,000 and accumulated depreciation of $75,000. The building is depreciated using straight line depreciation and when the building was bought 5 years ago it had an estimated useful life of 10 years with zero residual value. The tax rate is 30%. The business combination valuation entries in relation to the building for the year ended 30 June 2025 is:

Select one:

a.

Dr Accumulated depreciation$ 75,000

Cr Building$ 55,000

Cr Deferred tax Liability$ 6,000

Cr BCVR$ 14,000

Dr Depreciation expense$ 2,000

Dr Retained earnings (1/7/24) $ 6,000

Cr Accumulated depreciation$ 8,000

Dr Deferred tax liability$ 2,400

Cr Income tax expense$ 600

Cr Retained earnings (1/7/24)$ 1,800

b.

Dr Accumulated depreciation $ 75,000

Cr Building$ 55,000

Cr Deferred tax Liability$ 6,000

Cr BCVR$ 14,000

Dr Depreciation expense$ 2,000

Cr Accumulated depreciation$ 2,000

Dr Deferred tax liability$ 1,800

Cr Income tax expense$ 1,800

c.

Dr Accumulated depreciation$ 75,000

Cr Building$ 55,000

Cr Income tax payable$ 14,000

Cr BCVR$ 6,000

Dr Depreciation expense$ 6,000

Dr Retained earnings (1/7/24)$ 2,000

Cr Accumulated depreciation$ 8,000

Dr Deferred tax liability$ 2,400

Cr Income tax payable$ 600

Cr Retained earnings (1/7/24)$ 1,800

d.

Dr Accumulated depreciation $ 75,000

Cr Building$ 55,000

Cr Deferred tax Liability$ 6,000

Cr BCVR$ 14,000

Dr Depreciation expense$ 4800

Cr Income tax expense$ 1200

Cr Retained earnings (1/7/24)$ 3,600

e.None of the other options.