X Ltd.and Y Ltd.For a joint venture on joint venture called XY Inc.on January 1,2009.X Ltd.Invested contributed equipment with a book value of $600,000 and a fair value 0f $2,100,000 for a 50% interest in the joint venture.On December 31,2009,XY Inc.reported a net income of $612,000.The equipment transferred has an estimated useful life of 20 years.Ignore taxes.
-Calculate the gain on the contribution of equipment and prepare the journal entries to record the events on January 1 and December 31,2009.Also calculate under the equity method X Ltd.'s share of net income and the amount it will recognize.

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The Answer of X Ltd.and Y Ltd.For a joint venture on joint venture called XY Inc.on January 1,2009.X Ltd.Invested contributed equipment with a book value of $600,000 and a fair value 0f $2,100,000 for a 50% interest in the joint venture.On December 31,2009,XY Inc.reported a net income of $612,000.The equipment transferred has an estimated useful life of 20 years.Ignore taxes.
-Calculate the gain on the contribution of equipment and prepare the journal entries to record the events on January 1 and December 31,2009.Also calculate under the equity method X Ltd.'s share of net income and the amount it will recognize.

X LtdAnd Y Ltd