Additional information:1. Thor Ltd was appointed manager of the joint operation.2. The tax rate is 30%.Requirements:(i) journal entries required to record the initial investment for Loki Ltd, including any asset

impairment. (ii) Prepare the journal entries recorded by Loki on 30 June 2020 to record its share of assets in thejoint arrangement. (iii) Assets in a joint operation are owned as tenants in common. Explain how AASB 11 accommodatesthis unique feature of a joint operation.

On 1 July 2019, Thor Led entered into a 50:50 joint operation with Loki Led to produce Hair conditioners. It was agreed that each operator would share output and costs equally. Thor Ltd's contribution: Fair value Cash $17 million Loki Ltd's contribution: Fair value Land $ 1 million (carrying amount is $3.5 million) Plant $16 million (cost $28 million, accumulated depreciation $18 million) For the year ended 30 June 2020, the following financial statements were prepared by the joint operation manager. Extract of Balance sheet as at 30 June 2020 Assets: $'000 Cash 400 Inventory-WIP 1,200 Plant 29,000 Land 4,000 Total assets 34,600