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On 1 July 2010,Sunday Ltd Entered into a 50:50 Joint \bullet

question 11

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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
\bullet Production costs for the JO for the year ended 30 June 2011 were as follows.
 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  \bullet Production costs for the JO for the year ended 30 June 2011 were as follows.    \bullet The remaining useful life of the equipment contributed by Sunday is 5 years.  \bullet 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.  \bullet 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? A) Debit against the cash in JO account of $3 000 000. B) Debit against the equipment in JO account of $1 000 000. C) Credit against the cash of $2 000 000. D) Credit against the gain on equipment of $500 000.
\bullet The remaining useful life of the equipment contributed by Sunday is 5 years.
\bullet 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.
\bullet 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:
 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  \bullet Production costs for the JO for the year ended 30 June 2011 were as follows.    \bullet The remaining useful life of the equipment contributed by Sunday is 5 years.  \bullet 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.  \bullet 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? A) Debit against the cash in JO account of $3 000 000. B) Debit against the equipment in JO account of $1 000 000. C) Credit against the cash of $2 000 000. D) Credit against the gain on equipment of $500 000.
Which of the following will not form part of Sunday Ltd's initial contribution entry?

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Definitions:

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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