A Joint Operation Holds Plant and Equipment with a Carrying

A joint operation holds plant and equipment with a carrying amount of $450 000. The two joint operators participating in this arrangement share control equally. They also depreciate plant and equipment using the straight-line method. The plant and equipment has a useful life of 6 years. At reporting date, each joint operator must recognise the following entry, in relation to depreciation, in its records:

A) DR Depreciation $37 500.
B) DR Depreciation $75 000.
C) DR Assets in joint operation $37 500.
D) DR Investment in joint operation $75 000.

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