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On January 1, 2019, RAIGOR CORP. and EARTHSHAKER INC. incorporated STONEHOOF COMPANY which has its fiscal and operational autonomy. The contractual agreement of the incorporating
On January 1, 2019, RAIGOR CORP. and EARTHSHAKER INC. incorporated STONEHOOF COMPANY which has its fiscal and operational autonomy. The contractual agreement of the incorporating entities provided that the decisions on relevant activities of STONEHOOF will require the unanimous consent of both entities. Both RAIGOR and EARTHSHAKER will have rights to the net assets of STONEHOOF. Both entities invested P500,000 each equivalent to 40:60 capital interest of STONEHOOF COMPANY. The financial statements of the joint venture for its 3 -year operation are as follows: REQUIREMENTS: Determine (a) the investment income for the years 2019-2021; (b) the balance of investment in joint venture for the years ended December 31, 2019-2021 for both RAIGOR and EARTHSHAKER
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