Operators share output   LO4 Brisbane Ltd enters into an arrangement with another operator, Ipswich Ltd, to establish an unincorporated joint operation to produce a drug that assists both hayfever sufferers and those with sinus problems. To produce the drug requires a combination of the technical and pharmaceutical knowledge of both companies. Each company will receive an equal share of the output of the drug, which they will retail through their own preferred outlets, potentially under different names. Brisbane Ltd agrees to manage the project for a fee of $100 000 p.a. Brisbane Ltd estimates that it will cost $80 000 to provide the service. The management fee is capitalised into the cost of inventories produced. The operation commences on 1 January 2020, with each operator providing $1 000 000 cash. At the end of the first year, the statement of financial position of the joint operation showed: Assets Vehicles $ 200 000 Accumulated depreciation (50 000) Equipment 820 000 Accumulated depreciation (60 000) Inventories 80 000 Work in progress 320 000 Materials 210 000 Total assets 1 520 000 Liabilities Provisions 80 000 Payables 40 000 120 000 Net assets $1 400 000 Operators’ equity Initial contributions 2 000 000 Inventories delivered (400 000) General administration costs (200 000) Total equity $1 400 000 Required 1. Prepare the journal entries in the records of Brisbane Ltd during 2020. 2. What differences would occur if the management fee paid to Brisbane Ltd were treated as general administration costs?