Venturer B contributed technology with a fair value of $900,000 for a 53% interest n JV. All three entities have Dec 31 as the reporting day. Required: 1) Journal entry Venturer A should make on the day of investments. 2) Journal entry Venturer A should make On Dec 31, 2019.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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On Jan. 1, 2019, Venturer A contributed an equipment to JV for a 47% Interest. The equipment
has a fair value of $800,000 and a carrying value of $400,000 as well as 10 years remaining Life.
Venturer B contributed technology with a fair value of $900,000 for a 53% interest
in JV. All three entities have Dec 31 as the reporting day.
Required:
1) Journal entry Venturer A should make on the day of investments.
2) Journal entry Venturer A should make On Dec 31, 2019.
Transcribed Image Text:On Jan. 1, 2019, Venturer A contributed an equipment to JV for a 47% Interest. The equipment has a fair value of $800,000 and a carrying value of $400,000 as well as 10 years remaining Life. Venturer B contributed technology with a fair value of $900,000 for a 53% interest in JV. All three entities have Dec 31 as the reporting day. Required: 1) Journal entry Venturer A should make on the day of investments. 2) Journal entry Venturer A should make On Dec 31, 2019.
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