AAA and BBB formed a joint venture called CCC on January 1, 2022. Presented below are some relevant details on the establishment of this Joint Venture: All transactions were considered to be of commercial substance. The fiscal year end for all three entities (AAA, BBB, CCC) is December 31. AAA contributed plant and equipment with a fair value of $600,000. AAA's share in the venture was 30%; BBB's share is 70%. BBB contributed assets with a book value of $1,100,000 All assets transferred had a remaining useful life of 17 years. At the end of 2022, AAA realized a gain of $8,465 for its share of contributed plant and equipment. Required: Calculate the book value of plant and equipment contributed by AAA.
Please do not provide answer in an image formate thank you.
AAA and BBB formed a joint venture called CCC on January 1, 2022. Presented below are some relevant details on the establishment of this Joint Venture:
All transactions were considered to be of commercial substance.
The fiscal year end for all three entities (AAA, BBB, CCC) is December 31.
AAA contributed plant and equipment with a fair value of $600,000.
AAA's share in the venture was 30%; BBB's share is 70%.
BBB contributed assets with a book value of $1,100,000
All assets transferred had a remaining useful life of 17 years.
At the end of 2022, AAA realized a gain of $8,465 for its share of contributed plant and equipment.
Required:
Calculate the book value of plant and equipment contributed by AAA.
Step by step
Solved in 2 steps
