I 5) X Ltd. and Y Ltd. formed a joint venture on joint venture called XY Inc. on January 1, 2020. X Ltd. Invested contributed equipment with a book value of $600,000 and a fair value of $2,100,000 for a 50% interest in the joint venture. On December 31, 2020, XY Inc. reported a net income of $612,000. The equipment transferred has an estimated useful life of 20 years. Ignore taxes. 5) Assume the transaction does not have commercial substance because X Ltd. owned a similar portion of the same type of equipment both before and after the contribution to the joint venture. The same facts apply, but in this case assume that X Ltd. Receives a 50% interest plus $390,000 in cash (which was contributed by the other joint venturer). Record the contribution of assets, the share of earnings and the realization of the gain on transfer