The Following Information Relates to Questions

question 20

Multiple Choice

The following information relates to Questions
A Ltd and B Ltd have established the AB Joint Operation. A Ltd has a 60% interest in the joint operation and B Ltd has a 40% interest.

A Ltd contributed an asset with a carrying amount of $90,000 and a fair value of $120,000 and B Ltd agreed to provide technical services to the joint operation over the first two years of operations. The fair value of the technical services was agreed to be $80,000 and the cost to provide the services was estimated at $65,000 at the inception of the joint operation.

-As part of its initial contribution entry B Ltd will record a:

• A) Debit against the Services Receivable in JO account of $32,000;
• B) Debit against the Plant in JO account of $36,000;
• C) Credit against the Obligation to JO of $39,000;
• D) Credit against the Gain on Provision of Services of $6,000.

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Definitions:

Implicit Memory

A type of long-term memory that does not require conscious thought to recall, expressed through automatic skills and conditioned responses.

The Spacing Effect

A phenomenon in psychology where learning is more effective when study sessions are spaced out over time, rather than crammed into one session.

Long-Term Potentiation

A long-lasting increase in synaptic strength between two neurons, thought to be a biological mechanism underlying learning and memory.

Synaptic Basis

The fundamental mechanisms of how neurons communicate with each other through synapses.