Allied Co. and Bruno Inc. formed AB Ltd., a joint venture on January 1, 20X1. Allied invested equipment with a carrying amount of $500,000 and a fair value of $800,00 for a 40% interest in AB Ltd., while Bruno contributed technology. Assuming that the transaction does have commercial substance, the journal entry made by Allied Co. to record the initial investment in AB Ltd on January 1, 20X1 will be Multiple choice question. Debit Investment in AB Ltd. of $800,000; Credit Equipment of $500,000; Credit Equipment of $500,000; Credit Gain on transfer of equipment to AB Ltd of $300,000 Debit Investment in AB Ltd. of $800,000; Credit Equipment of $500,000; Credit Unrealized gain (contra account) of $180,000; Credit Gain on transfer of equipment to AB Ltd $120,000; Debit Investment in AB Ltd. of $800,000; Credit Equipment of $500,000; Credit Unrealized gain (contra account) of $120,000; Credit Gain on transfer of equipment to AB Ltd $180,000; Debit Investment in AB Ltd. of $800,000; Credit Equipment of $500,000; Credit Equipment of $500,000; Credit Unrealized gain (contra account) of $300,000