Apple Ltd, Orange Ltd and Pear Ltd (3 companies) formed a  joint operation on 1 July 2020. Each company has  a one-third interest in the joint operation.  Apple Ltd agreed to contribute plant and equipment with a fair value of $3m to the joint operation, whilst the  other operators contributed $3m in cash. The  carrying amount of the plant was:

Plant & Equipment                              2,500,000

Accumulated depreciation                     700,000  

         Carrying Amount                                 1,800,000

Required:

1. Prepare the required entries for each operator (6 marks)
2. Discuss different types of joint arrangements with reference to relevant AASB. Outline advantages and disadvantages of each type of joint arrangements. (4marks)