The Following Information Pertains to Questions

question 40

Multiple Choice

The following information pertains to questions
John Inc and Victor Inc.formed a joint venture on January 1,2010.John invested plant and equipment with a book value of $500,000 and a fair value of $800,000 for a 30% interest in the venture which was to be called Jinxtor Ltd.Victor contributed assets with a fair value of $2,000,000 (including $200,000 in cash) for its 70% stake in Jinxtor.Jinxtor reported a net income of $3,000,000 for 2010.John's plant and equipment were estimated to provide an additional 5 years of utility to Jinxtor.
-At what amount would John record its initial investment in Jinxtor?

• A)$740,000
• B)$240,000
• C)$800,000
• D)$500,000

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Definitions:

Well Liked

Being favored, approved, or admired by many people or within a specific group or context.

Aggressive-Rejected

A social categorization for individuals, often children, who are not accepted by peers because of their aggressive and confrontational behavior.

Popular

describes being liked, admired, or supported by a large number of people or within a specific group/community.

Cooperative

Involving mutual assistance and collaboration among individuals or groups towards a common goal, often characterized by shared decision-making and responsibilities.