A 50:50 Joint Operation Was Commenced Between Two Participants

Multiple Choice

A 50:50 joint operation was commenced between two participants. Ronan Ltd contributed cash of $100 000, and Keating Ltd contributed a Building with a fair value of $100 000
And a carrying amount of $80 000. Using the line-by-line method of accounting, Keating Ltd would record which of the following entries?

A) DR Building in JO $80 000 CR Building $80 000
B) DR Building in JO $100 000 CR Building $80 000
CR Gain on sale of building $20 000
C) DR Investment in joint operation $100 000 CR Building $80 000
CR Gain on sale of building $20 000
D) DR Cash in JO $50 000 DR Building in JO $50 000
CR Building $80 000
CR Gain on sale of building $20 000