Hi dear helper,

Please letting me know how to calculate it(step by step) and give me an explanation about the steps(if there's journal entry, please give me that), thanks, I'll give you the thumb! (If you can't or do not want to, please let someone else do, thanks)

Please completes the following question about joint operation of A ltd

1.

2.

A Ltd. B Ltd and C Ltd commenced a joint operation on 1 January 2020. A Ltd contributed a license with a fair value of $2.000.000. B Ltd and C Ltd each contributed $3,000,000 in cash. The book value of the license in the books of A Ltd as at the date of transfer was $1,400,000. A Ltd does not revalue the license subsequent to the transfer to the joint operation. The license had a remaining life of 3 years as at the commencement of the joint operation. The residual value of the license at the end of the useful life is $ 0. Output from the joint operation is shared in the ratio of the contributions (25%, 37.5% and 37.5% for A Ltd, B Ltd and C Ltd respectively). The contractual arrangement establishes that each joint operator shares interest in assets in proportion to their initial contributions. B Ltd uses the straight-line method to amortize intangibles. The company income tax rate is 30%. Required: Calculate the carrying amount of the asset in the accounts of B Ltd at31 December 2020 A Ltd. Ora Ltd and D Ltd commenced a joint operation on 1 July 2016. A Ltd contributed a patent with a fair value of $2.100.000 and cash of $900.000. The patent had a remaining life of 8 years as at the commencement of the joint operation. Ora Ltd and D Ltd each contributed $3,000,000 in cash. Output from the joint operation is shared equally between the three joint operators. The book value of the patent in the books of A Ltd as at the commencement of the joint operation was $800,000. There is not an active market for the patent and A Ltd does not revalue the patent subsequent to the transfer to the joint operation. Required: The contribution journal entry in the books of A Ltd on 1 July 2016 must include: A. Cr Gain on sale of patent $866,667 B. Cr Gain on sale of patent $650,000 C. Cr Cash $3,000,000 D. Dr Gain on sale of patent $433,333 E. None of the other answer options is true