A Joint Operation Holds Equipment with a Carrying Amount of $1

question 24

Multiple Choice

A joint operation holds equipment with a carrying amount of $1 200 000. The two joint operators participating in this arrangement share control equally. They also depreciate equipment using the straight-line method. The equipment has a useful life of 5 years. At reporting date, each joint operator must recognise which of the following entries in its records in relation to depreciation?

• A) DR Depreciation expense $240 000
• B) DR Depreciation expense $120 000
• C) DR Investment in joint operation $240 000
• D) DR Assets in joint operation $120 000

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Definitions:

Social Inequality

The unequal distribution of resources, opportunities, and privileges among different social groups in a society.

Anti-Natalist

A philosophical stance or policy that opposes or expresses skepticism towards procreation and childbirth, often due to environmental, social, or personal concerns.

One-Child Policy

A population control policy of China, implemented in 1979 and officially phased out in 2015, which limited families to having only one child to curb the growth of its population.

Social Policy

A government's course of action intended to influence and determine decisions, actions, and other matters related to societal welfare and the well-being of its citizens.