Jelli, Alona, and Joyce sign an engagement to collectively purchase a yacht and to hire a company to manage and operate the yacht on their behalf. The costs involved in running and operating the yacht business and the revenue earned from the pipeline are shared by the three parties based on their ownership percentage. All major operating and financing decisions related to the yacht business must be agreed to by the three companies. The cost of purchasing the yacht was P56,000,000. The yacht has an estimated 20-year useful life with no residual value. The management fee for operating the yacht business for 2019 was P11,200,000. Revenue earned from the yacht business in 2019 was P18,400,000. Jelli invested P16,800,000 for a 30% interest. Compute the share of Jellin the revenue of the joint operation for 2019
Jelli, Alona, and Joyce sign an engagement to collectively purchase a yacht and to hire a company to manage and operate the yacht on their behalf. The costs involved in running and operating the yacht business and the revenue earned from the pipeline are shared by the three parties based on their ownership percentage. All major operating and financing decisions related to the yacht business must be agreed to by the three companies. The cost of purchasing the yacht was P56,000,000. The yacht has an estimated 20-year useful life with no residual value. The management fee for operating the yacht business for 2019 was P11,200,000. Revenue earned from the yacht business in 2019 was P18,400,000. Jelli invested P16,800,000 for a 30% interest. Compute the share of Jellin the revenue of the joint operation for 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Jelli, Alona, and Joyce sign an engagement to collectively purchase a yacht
and to hire a company to manage and operate the yacht on their behalf.
The costs involved in running and operating the yacht business and the
revenue earned from the pipeline are shared by the three parties based on
their ownership percentage. All major operating and financing decisions
related to the yacht business must be agreed to by the three companies.
The cost of purchasing the yacht was P56,000,000. The yacht has an
estimated 20-year useful life with no residual value. The management fee
for operating the yacht business for 2019 was P11,200,000. Revenue
earned from the yacht business in 2019 was P18,400,000. Jelli invested
P16,800,000 for a 30% interest. Compute the share of Jelli in the revenue
of the joint operation for 2019
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