On January 1, Year 10, Marc Ltd. and Malus Ltd. formed a joint venture called MM Inc.
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, Year 10, Marc Ltd. and Malus Ltd. formed a joint venture called MM Inc.
Marc Ltd. contributed equipment with a carrying value of $900,000 and a fair value of $1,500,000 and in return receives a 40% interest in MM Inc. and $400,000 in cash (contributed by the other joint venture). Assume that the transaction has NO commercial substance, and the equipment has an estimated useful life of 10 years. On Dec 31, Year 10, MM Inc. reported a net income of $800,000 and declared a dividend of $200,000
Required:
For Marc Ltd., prepare the journal entries to record the above events from January 1 to December 31, Year 10.
Expert Answer:
Posted Date:
