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Problem 1: On May 1,2021, Amanda and Brandy formed a joint operation to acquire and sell a special type of merchandise. The contractual arrangements provide that Amanda is to manage the joint operation for a fee and that gain and losses are to be divided equally. On May 1,2021, Brandy invests cash of $52,000, which $50,000 was used to purchase merchandise. Amanda incurs expenses amounting to $2,500. On May 20, one half of the merchandise was sold for $36,000 cash. In the books of Brandy, how much is the balance of the Investment in Joint Operation account on May 30, 2021?
Option 1: $54,250Option 2: $56,250Option 3: $45,750Option 4: $50,000
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