X Ltd,Y Ltd and Z Ltd Contractually Form a Joint

question 67

Multiple Choice

X Ltd,Y Ltd and Z Ltd contractually form a joint operation on 1 July 2013 to construct an oil well to extract oil that each of the joint operators will refine.The three companies agree to contribute the following amounts of capital to the joint operation in the same proportion as their rights to the assets and outputs: $$\begin{array} { | r | r | r | } \hline \text { XLtd } & \$ 25000000 & 50 \% \\\hline Y \text { Ltd } & \$ 15000000 & 30 \% \\\hline Z \text { Ltd } & \underline{\$ 10000000} & \underline { 20 \% } \\\hline & \underline{\$ 50000000} & \underline{100 \%} \\\hline\end{array}$$ The funds are used on 1 July 2013 to purchase the land for $20 million and a rig and other equipment for $10 million.The balance of $20 million will be called on by the joint operation manager as required.Y Ltd and Z Ltd borrowed $5 million and $4 million respectively to finance their contributions to the joint operation.What entries would be required to record the establishment of the joint operation and where would these entries be made?

• A) The entries would be consolidation journal entries for each joint operator.
• B) The entries would be made in each joint operator's own books.
• C) The entries would be made in each joint operator's own books.
• D) The entries would be made in each joint operator's own books.

Understand the purposes and effects of transformations in data analysis.

Distinguish between explanatory and response variables.

Interpret scatterplots, including form, direction, strength, and the addition of categorical variables.

Recognize the importance of having positive values for logarithmic transformations.

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Definitions:

Marginal Revenue

Enhanced earnings from selling an additional unit of a product or service.

Prefabricated Garages

Structures for vehicle storage that are manufactured off-site in standard sections and then transported and assembled at the final location.

Total Revenue

The total amount of money a company receives from selling its goods or services, before any expenses are deducted.

Price Reduced

A decrease in the selling price of a product or service.