• Oracle Corporation invested $3 billion in a joint venture to develop new software products. The company reported the following financial information:
  • Investment in Joint Venture: $3 billion
  • Total Assets: $120 billion
  • Total Liabilities: $50 billion
  • Net Income: $12 billion

• Requirements:
  1. Calculate Oracle’s total assets after accounting for the investment in the joint venture.
  2. Prepare a balance sheet reflecting the investment in the joint venture and adjusted total assets.
  3. Analyze the impact of the joint venture investment on Oracle’s financial leverage.
  4. Discuss the accounting treatment of investments in joint ventures in Oracle’s financial statements.
  5. Evaluate the potential return on investment from Oracle’s participation in the joint venture.