On 1 July 2023 Perth Ltd entered into a 50:50 joint operation with Hobart Ltd to develop robotic home appliances. Each operator's initial contribution was $1 million. Perth contributed $500 000 cash and equipment with a fair value of $500 000 and a book value of $400 000. The remaining useful life of the equipment contributed by Perth is 5 years. Tasmania Ltd contributed $1 million cash. Additional information:
An extract of the joint operation's balance sheet at 30 June 2024 shows:

\begin{array}{lr}\text { Assets }&\$\\\text { Cash } & 290,000 \\\text { Raw materials } & 80,000 \\\text { Work in progress } & 460,000 \\\text { Finished goods inventories } & 100,000 \\\text { Equipment } & 500,000 \\\text { less: Accumulated depreciation } & -100,000\\\text { Total Assets }&1,330,000\\\text { Liabilities }\\\text { Accrued wages } & 40,000 \\\text { Accounts payable } & 140,000 \\\text { Total Liabilities } & \$ 180,000 \\\text { Net Assets } & \mathbf{1 , 1 5 0 , 0 0 0}\end{array}

Production costs for the joint operation for the year ended 30 June 2024 were:

\begin{array}{lr}\text { Raw materials } & \$ 420,000 \\\text { Wages } & 340,000 \\\text { Depreciation } & 100,000 \\\text { Overhead expenses } & 550,000\\\text { Total production costs } & 1,410,000 \\\text { Less Cost of inventories } & -950,000 \\\text { Work in Progress at 30 June 2024 } & \$ 460,000\end{array}

Cash receipts and payments for the year ended 30 June 2024 were:

\begin{array}{lr}&\text { Payments }&\text { Receipts }\\\text { Contributions }&&\$1,500,000\\\text { Wages } & \$ 300,000 \\\text { Raw materials } & 360,000 \\\text { Overhead expenses } & 550,000\\&\$1,210,000&\$1,500,000\end{array}

The following entries will form part of Perth Ltd's initial contribution entry except for:
A) DR Cash in JO account $750 000.
B) DR Equipment in JO account $250 000.
C) CR Cash $500 000.
D) CR Gain on equipment $50 000.

The Particular Relationship Between Parties That Signifies the Existence of a Joint

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