Question
A 40% joint operator in a jointly controlled operation sells an asset to the joint operation. The asset has a fair value of $5 000
A 40% joint operator in a jointly controlled operation sells an asset to the joint operation. The asset has a fair value of $5 000 000. The carrying amount in the books of the joint operator was $4 000 000. The profit to be recognised by the seller is:
| $600 000.
| ||
| $1 000 000.
| ||
| None of the rest
| ||
| $400 000.
|
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson,
4th ISA Edition
1844806782, 9781844806782
