On 1 July 2013, Merlot Ltd and Malbec Ltd entered into a joint venture by investing in a jointly controlled incorporated entity - Vineyards Pty Ltd. The purpose of the joint venture was to lease a 40-hectare vineyard for a five-year period at an annual lease rental of $200 000. Neither investor was a parent entity. Merlot Ltd and Malbec Ltd contributed the following assets to the joint venture in exchange for a 50% voting equity interest in Vineyards Pty Ltd. Carrying value $ Fair value $ Merlot Ltd - Plant ------------------ 80 000 100 000 Malbec Ltd - Cash ------------------ 100 000 100 000 The remaining useful life of the plant contributed by Merlot Ltd is five years. The joint venture agreement stated that a manager will be appointed with the responsibility for growing, harvesting and marketing the grapes. The manager is also responsible for ensuring all plant of the joint venture is maintained t