Xertz Limited purchased 100% of the shares in Axton Limited on 1 July 2020, for a cash consideration of $1,200,000. On that date, the equity balances of Axton Limited were:

Share Capital $1,000,000

Retained Earnings $300,000

All of the identifiable net assets were recorded at their fair value in the books of Axton Limited. The tax rate is 30%. The pre-acquisition entry on 30 June 2022 would include a:

(a) Dr Retained Earnings (1/7/21) $200,000

(b) Dr Goodwill $100,000

(c) Dr BCVR $70,000

(d) None of the options