JOINT OPERATION

Profit and loss of the joint operation shall be divided equally.

2. A, B and C enters into a joint arrangement that is considered a joint operation. The joint operation's transactions during the period are as follows: a. A contributes inventory costing P 100,000. A pays P 20,000 freight in b. C. d. E. f. transfern'ng the inventory to C, the appointed custodian. B contributes cash P 150,000. C makes purchases of additional inventory for P 150,000 using the joint operation's funds. C makes total sales of P 900,000. All the merchandise was sold except 1.4 of those contributed by A. C pays total expenses of P 180.000 using his personal funds. C is entitled to a 10% bonus on prot before deducting bonus as compensation for his services. The joint operators share equally any remaining prot. 9. A takes back the unsold inventory. Requirement: a. Compute for the prot of the joint operation before the bonus of C. b. Compute for the joint operator's respective shares in the prot. c. Compute for the cash settlements between the joint operators assuming the joint operation is extinguished at year-end