On 1 July 20X0, the Ears & Eyes Joint Operation $\quad$

On 1 July 20X0, the Ears & Eyes Joint Operation was established. The two joint operators participating in this arrangement, Ears Ltd and Eyes Ltd, share control equally. Both joint operators contributed cash to establish the joint operation. The joint operation holds equipment with a carrying amount of $1 200 000. Both joint operators depreciate equipment using the straight-line method and the depreciation is regarded a cost of production. The equipment has a useful life of 5 years. At 30 June 20X1 Ears Ltd had sold all inventory distributed to it and Eyes Ltd had sold 50% of the inventory distributed to it.
At 30 June 20X1 Venturer Eyes must recognise the following entry, in relation to depreciation, in its records:
a. $\quad$ DR Depreciation expense $\quad$$\quad$$\$ 240,000$ ;
b. $\quad$ DR Accumulated depreciation $\quad$ $120, 000;
c. $\quad$ DR Inventory $\quad$$\quad$$\quad$$\quad$$\$ 60,000$ ;
d. $\quad$ DR Cost of sales $\quad$$\quad$$\quad \$ 120,000$ .