At the beginning of the current year, Jalu S.A. enters a joint venture with another company to develop new technology. Each company invests €1,000,000 for a 50% interest in the joint venture. During the year, the joint venture reports income of €200,000 and pays dividends of €60,000. At the end of the year, the joint venture's balance sheet reports €5,000,000 in assets and €2,860,000 in liabilities. Jalu reports €22,000,000 in assets and €10,000,000 in liabilities from its own operations.
At what amount are Jalu's total liabilities reported at the end of the year?

Question

Quizplus · Accepted Answer

Using the equity method, only Jalu's liabilities are reported.

At the Beginning of the Current Year, Jalu S