On 30 June 2013,Perkins Ltd,Thorpe Ltd and Hackett Ltd Entered

question 4

Multiple Choice

On 30 June 2013,Perkins Ltd,Thorpe Ltd and Hackett Ltd entered into a joint operation to produce apparel and related products for the Australian national swimming team.The joint operators equally share in output and costs.On the same date,the recorded amounts of each joint operator's contributions are as follows: $$\begin{array} { | l | r | r | r | } \hline & \begin{array} { r } \text { Perkins Ltd } \\\text { (Machinery) }\end{array} & \begin{array} { r } \text { Thorpe Ltd } \\\text { (Equipment) }\end{array} & \begin{array} { r } \text { Hackett Ltd } \\\text { (Cash) }\end{array} \\\hline \text { Historical cost } & \$ 900000 & \$ 600000 & - \\\hline \text { Accumulated depreciation } & \$ 200000 & \$ 100000 & - \\\hline \text { Agreed value } & \$ 600000 & \$ 600000 & \$ 600000 \\\hline\end{array}$$ Assume that agreed values equal recoverable amount and no revaluations have occurred.
Which of the following combinations correctly indicates the effects on the statement of financial position and statement of financial performance of Thorpe Ltd,respectively,after processing the journal entries to account for this joint operation arrangement?

• A) no change; no change
• B) asset increase; profit increase
• C) asset decrease; profit decrease
• D) asset increase; profit decrease

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Panic

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GABA

A neurotransmitter in the brain known for its role in inhibiting nerve transmissions, contributing to calming nervous activity.

Neurotransmitter System

A set of mechanisms within the nervous system that involves the synthesis, release, and reception of neurotransmitters to communicate between neurons.

Anxiety Response

A psychological and physiological response to stress characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.