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On 1 July 2010,Sunday Ltd entered into a 50:50 joint operation with Night Ltd to develop an open cut coal mine in central Queensland.Each operator's initial contribution was $4 million.Sunday contributed $2 million cash and equipment with a fair value of $2 million and a book value of $1 000 000.Night contributed $4 million cash.
Additional information
Production costs for the JO for the year ended 30 June 2011 were as follows.
The remaining useful life of the equipment contributed by Sunday is 5 years.
Night is responsible for the day to day management of JO and has recognised the management fee received during the year as revenue.The costs of providing these management services to JO was $450 000.
Night has sold all of the coal distributed to it and Sunday has sold 50% of the coal distributed to it by 30 June 2011.
An extract of JO's balance sheet at 30 June 2011 shows:
Which of the following will not form part of Sunday Ltd's initial contribution entry?
Latent Learning
The process of learning that occurs without any obvious reinforcement of the behavior or associations that are learned.
Unconditioned Stimulus
In classical conditioning, a stimulus that naturally triggers a response without any need for prior learning.
Conditioned Stimulus
A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.
Unconditioned Response
An automatic, natural reaction to a stimulus that occurs without the need for prior learning.
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