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

question 1

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 the following entry, in relation to depreciation, in its records:

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

Understand the concept and goals of Six Sigma in eliminating defects.

Identify strategies for monitoring and ensuring quality in production.

Comprehend the benefits of mass production and its limitations for custom items.

Understand the role of benchmarking in continuous improvement.