the questions are indicated on the picture

PROBLEM 2: FOR CLASSROOM DISCUSSION Identifying a joint arrangement 1. Read Co. and Learn Co. are national distributors of textbooks. Read and Write enters into a contract to acquire a warehouse in a particular region. Each party will use the warehouse to store its own inventories. The parties agree to share in the costs of acquiring and maintaining the warehouse. The arrangement between Read and Learn is most likely a c. joint venture. a. joint operation. b. jointly controlled asset. d. none of these 2. Read Co. and Learn Co. are publishers of textbooks. Read and Learn enters into a contract to put up a bookstore which shall be named Knowledge Bookstore. Knowledge will have its own assets, incur its own liabilities, and earn and incur its own revenues and expenses. Read and Learn will each have a 50% interest in the net assets and profits of Knowledge. The arrangement between Read and Learn is most likely a a. joint operation. c. joint venture. b. jointly controlled net assets. d. none of these Financial reporting 3. Tech Co. and Robotics Co. are joint operators in the development of Super OS, a mobile phone operating system. Each joint operator retains control over the assets it has contributed to the joint operation and shares equally in the profits and losses of the joint operation. During the year, Tech Co. earns revenue of P1,000,000 from its own operations. Sales of Super OS amount to P400,000. How much total revenue shall be reported in Tech Co.'s statement of profit or loss for the year? a. P1,000,000 c. P1,400,000 b. P1,200,000 d. Either a or b 4. Entity A acquires 50% interest in a joint venture for PIM and appropriately records the transaction under an investment account. At the end of the period, the joint venture reports profit of PIM and distributes $600,000 to the owners. How much is the carrying amount of the investment account in Entity A's current year financial statements? a. P1.3M b. P1.2M C. PIM d. none of these