Jack Limited and Beanstalk Limited Formed a Joint Operation and Share

Jack Limited and Beanstalk Limited formed a joint operation and share in the output of the joint operation 60:40. The joint operation paid a management fee of $42 000 to Jack Limited during the current period. The cost to Jack Limited of supplying the management service was $35 000. Jack Limited records the management fee revenue as follows:

A) DR Cash $42 000 CR Fee revenue $42 000
B) DR Cash $35 000 CR Fee revenue $35 000
C) DR Cash $28 000 CR Fee revenue $28 000
D) DR Cash $7 000 CR Fee revenue $7 000