P Ltd acquired 100% of S Ltd in 20x1 which gave rise to a negative goodwill of $100 million. Under FRS 22, P Ltd adopted a policy of amortising the negative goodwill on a straight line basis over 10 years. When P Ltd transited from FRS 22 to FRS 103 in 20x5, there was an unamortized goodwill of $60 million. For 20x8 consolidation, the consolidation journal entries for the transition from FRS 22 to FRS 103 in respect of the negative goodwill should be:

1. Dr Negative goodwill $70 million; Cr Beginning retained profit $70 million.
2. Dr Negative goodwill $40 million; Cr Beginning retained profit $40 million.
3. Dr Negative goodwill $60 million; Cr Beginning retained profit $60 million.
4. Dr Negative goodwill $100 million; Cr Beginning retained profit $100 million.
5. None of the listed choices.

Which option is it?