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Ven, Co. owns 20% interest in Nus Joint Venture, Inc. and uses the equity method to account for its interest in the joint venture. Ven, Co. has a joint control over Nus Joint venture, Inc. On January 1, 2018, Ven sold equipment with carrying amount of 400,000 and a remaining useful life of 10 years to Num Joint Venture for 480,000. Gain of 80,000 was recorded by Ven. Both Ven and Nus uses the straight-line method of depreciation.
Requirements:
Problem 1. How much is the adjusted share in the profit of the joint venture in 2018 of the joint venture reports profit of 4,000,000?
Problem 2. How much is the adjusted share in the profit of the joint venture in 2019 of the joint venture reports profit of 4,800,000?
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