Prepare journal entries to record the events from january

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On January 1, Year 10, Marc Ltd. and Malus Ltd. formed a joint venture called MM Inc. Marc Ltd. contributed equipment with a carrying value of $900,000 and a fair value of $1,500,000 and in return receives a 40% interest in MM Inc. and $200,000 in cash (contributed by the other joint venturer). Assume that the transaction has NO commercial substance, and the equipment has an estimated useful life of 20 years. On Dec 31, Year 10, MM Inc., reported a net income of $600,000 and declared a dividend of $100,000

Required:

Problem 1: For Marc Ltd., prepare the journal entries to record the above events from January 1 to December 31, Year 10.

Reference no: EM132968635

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