On January 2, 2014, Adena Corporation and Dillon Company form a joint venture to LO 2 develop

Question:

On January 2, 2014, Adena and Dillon Company form a joint venture to LO 2 develop a new product. Each contributes $2.5 million and has a 50 percent interest in the venture. At December 31, 2014, the joint venture's is as follows (in millions):

On January 2, 2014, Adena Corporation and Dillon Company form

The joint venture reported net income of $600,000 during 2014. Each investor uses the equity method to report its interest in the joint venture.
Required
Show how the joint venture is reported on each investor's financial statements for 2014. Where are the joint venture's individual assets and liabilities reported by the venturers?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...