John Inc and Victor Inc. formed a joint venture on January 1, 2020. John invested plant and equipment with a book value of $500,000 and a fair value of $800,000 for a 30% interest in the venture which was to be called Jinxtor Ltd. Victor contributed assets with a fair value of $2,000,000 (including $200,000 in cash) for its 70% stake in Jinxtor. Jinxtor reported a net income of $3,000,000 for 2020. John's plant and equipment were estimated to provide an additional 5 years of utility to Jinxtor. The transactions set out above were considered to have commercial substance. Assuming the plant and equipment transferred by John are used to generate a positive gross profit for Jinxtor, what is the amount of the amortization of the unrealized gain for 2020 arising from the transfer of John's assets? Multiple Choice $60,000 $42,000 $18,000 Nil Find Corp. is a joint operation in which Seek Inc. has a 20% interest. Seek reports its investment in Find using proportionately adjusted financial statements. A contractual agreement gives Seek proportionate rights (20%) to all of Finds' assets and proportionate responsibilities (20%) for all of Find's liabilities. Seek uses the equity method to record its investment but has yet to make any journal entries related to its investment in Find for 2020. The financial statements of both companies as at December 31, 2020, are shown below. Seek Inc. Find Corp. $800,000 $400,000 $200,000 $200,000 $200,000 $100,000 $60,000 $40,000 INCOME STATEMENTS Sales Cost of Sales Other Expenses Net Income BALANCE SHEETS Miscellaneous Assets Inventory Investment in Find Total Assets Miscellaneous Liabilities (Common Shares Retained Earnings. Jan 1 Net Income Total Llabilities & Equity $300,000 $60.000 $600,000 $120.000 $180.000 $900,000 $160,000 $200,000 $340,000 $200,000 $900,000 $360,000 $80,000 $100,000 $140,000 $40,000 $360,000 During 2020. Seek sold merchandise totaling $120.000 to Find and recorded a gross profit of 50% on these sales. At the end of 2020. Find's inventory contained $30,000 worth of merchandise purchased from Seek. Find also owed $50,000 to Seek at the end of 2020. Both companies are subject to a 40% tax rate. What is the total amount of sales that would appear on Seek's Proportionately Adjusted Income Statement? Multiple Choice $680,000 $816.000 O $1.000.000