On July 1 20X4,Gold Ltd formed a joint venture entity with Maggs Ltd,Research Pty Ltd,to research for ultimate sale in the hamburger market the Giant Genetic Spud (GGS)and the Square Tomato (SR).There was a contractual agreement under which each company shared control of the venture.Each company contributed $500,000 in share capital on that date; and,during the first year of operations,each contributed a further $2,000,000 through loans.For the year ended June 30 20X5,the following financial statements were produced for the joint venture entity (amounts in thousands): Balance Sheet as at June 30 20X5
Statement of Research and Development Activity for the Year ended June 30 20X5
At June 30 20X5,Gold Ltd was uncertain as to the outcome of Project GT; but felt reasonable certain that Project GGS would develop into an economically viable patent right in the following year.
At June 30 20X5,the net investment of Gold Ltd in the joint venture entity calculated using the equity method was:

Question

On July 1 20X4,Gold Ltd formed a joint venture entity with Maggs Ltd,Research Pty Ltd,to research for ultimate sale in the hamburger market the Giant Genetic Spud (GGS)and the Square Tomato (SR).There was a contractual agreement under which each company shared control of the venture.Each company contributed $500,000 in share capital on that date; and,during the first year of operations,each contributed a further $2,000,000 through loans.For the year ended June 30 20X5,the following financial statements were produced for the joint venture entity (amounts in thousands): Balance Sheet as at June 30 20X5
 Statement of Research and Development Activity for the Year ended June 30 20X5
 At June 30 20X5,Gold Ltd was uncertain as to the outcome of Project GT; but felt reasonable certain that Project GGS would develop into an economically viable patent right in the following year.
At June 30 20X5,the net investment of Gold Ltd in the joint venture entity calculated using the equity method was:

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The Answer of On July 1 20X4,Gold Ltd formed a joint venture entity with Maggs Ltd,Research Pty Ltd,to research for ultimate sale in the hamburger market the Giant Genetic Spud (GGS)and the Square Tomato (SR).There was a contractual agreement under which each company shared control of the venture.Each company contributed $500,000 in share capital on that date; and,during the first year of operations,each contributed a further $2,000,000 through loans.For the year ended June 30 20X5,the following financial statements were produced for the joint venture entity (amounts in thousands): Balance Sheet as at June 30 20X5
 Statement of Research and Development Activity for the Year ended June 30 20X5
 At June 30 20X5,Gold Ltd was uncertain as to the outcome of Project GT; but felt reasonable certain that Project GGS would develop into an economically viable patent right in the following year.
At June 30 20X5,the net investment of Gold Ltd in the joint venture entity calculated using the equity method was:

On July 1 20X4,Gold Ltd Formed a Joint Venture Entity