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

question 15

Multiple Choice

On 30 June 2013,Perkins Ltd,Thorpe Ltd and Hackett Ltd entered into a joint venture operation to produce apparel and related products for the Australian national swimming team.The venturers equally share in output and costs.On the same date,the recorded amounts of each venturer's contributions are as follows: 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 Perkins Ltd,respectively,after processing the journal entries to account for this joint venture arrangement?

• A) No change; No change;
• B) Asset increase; Profit increase
• C) Asset decrease; Profit decrease.
• D) Asset increase; Profit increase.
• E) Asset decrease; Profit decrease

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Definitions:

Lemming Effect

Refers to a phenomenon where individuals in a group follow each other's actions blindly, often disregarding their own interests or the potential dangers.

Allport's Conditions

Criteria identified by psychologist Gordon Allport that facilitate positive contact between groups, including equal status, common goals, and institutional support.

Deindividuation

A psychological state of decreased self-evaluation and decreased evaluation apprehension causing antinormative and disinhibited behavior.

Hostility Between Groups

Negative attitudes and aggressive actions directed from one group towards another, often stemming from prejudices or conflict over resources or values.