X and Y firms agree to establish XY joint venture. X invests $20000 cash and Y invests $30000 cash. XYachieved $50000 net income. The ventures shares net income or loss 2:3 respectively. XY distributes $20000cash for the ventures. The "investment in the XY joint venture" in the books of Y year end using equitymethod isa. $32000O b. $48000O c. $40000O d. $60000

The objective of the question is to calculate the value of the investment in the joint venture XY in…

Answered: X and Y firms agree to establish XY…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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