QUESTION 9 Lisa Limited and Jisoo Pty Limited entered into a joint operation, BPink, three years ago to manufacture and distribute branded clothing. The joint operation agreement indicates the parties will share output, contributions and costs, and hold the joint operation assets as tenants in common, with the respective interests being 40% Lisa Limited and 60% Jisoo Pty Limited. Lisa Limited contributed the plant which has a book value of $220,000 and a fair value at the date of contribution of $286,000 whilst Jisoo Pty Limited contributed cash of $429,000. Lisa Limited chose not to revalue their remaining interests in the contributed assets in their separate records. Three years after commencing the joint operation, production commenced at the start of the following financial year. The joint operators agreed to depreciate / amortise their interest in the assets of the joint operation in their own books. The joint operation manager has indicated the remaining useful life of the plant at the commencement of production is 10 years. Assuming straight line method applies to the determination of depreciation of the plant, how much depreciation will Lisa Limited record in the first year of production? O a. $28,600 O b. $22.000 OC. 58.800 O d. 513,200 QUESTION 10 Rose Limited and Jisoo Pty Limited entered into a joint operation, BPink, at the beginning of the financial year to manufacture and distribute branded clothing. The joint operation agreement indicates the parties will share output, contributions and costs, and hold the joint operation assets as tenants in common, with the respective interests being 609 Rose Limited and 40% Jisoo Pty Limited. Rose Limited has been appointed the manager of BPink and will receive an annual fee of $180,000 for performing the role. The estimated cost to of providing the services is 80% of that amount. The monthly invoice has been recognised as management fee revenue during the year. The end of year adjusting entry recorded by Rose Limited in relation to the management fee will include: O Dr Management fee revenue $108,000 Dr Management fee revenue $72,000 Dr Management fee revenue $180,000 O Cr Management fee revenue $108,000 QUESTION 11 John Ltd, an ultimate parent reporting entity, controls 75% of the ordinary voting shares of Echidna Ltd. Echinda Ltd has recently acquired a 10% interest in Wick Ltd. John Ltd has a 35% interest in Wick Ltd. What is the equity accounted interest in Wick Ltd that will be reported in the consolidated financial statements of John Ltd Group? O a. 2596 Ob4596 O G 3596 O 0.4096