A Joint Operation Holds Equipment with a Carrying Amount of $1

Multiple Choice

A joint operation holds equipment with a carrying amount of $1 200 000. The two joint operators participating in this arrangement share control equally. They also depreciate equipment using the straight-line method. The equipment has a useful life of 5 years. At reporting date, each joint operator must recognise which of the following entries in its records in relation to depreciation?

A) DR Depreciation expense $240 000
B) DR Depreciation expense $120 000
C) DR Investment in joint operation $240 000
D) DR Assets in joint operation $120 000