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: Assets Cash Raw materials Work in progress Finished goods inventories Equipment less: Accumulated depreciation Total Assets Liabilities Accrued wages Accounts payable Total Liabilities Net Assets $290,00080,000460,000100,000500,000−100,0001,330,00040,000140,000$180,0001,150,000 Production costs for the joint operation for the year ended 30 June 2024 were: Raw materials Wages Depreciation Overhead expenses Total production costs Less Cost of inventories Work in Progress at 30 June 2024 $420,000340,000100,000550,0001,410,000−950,000$460,000 Cash receipts and payments for the year ended 30 June 2024 were: Contributions Wages Raw materials Overhead expenses Payments $300,000360,000550,000$1,210,000 Receipts $1,500,000$1,500,000 By 30 June 2024, Tasmania Ltd has sold all of the robotic appliances distributed to it by the joint operation and Perth has sold 60% of its distribution of robotic appliances. The value of these inventories sold by Perth Ltd is:
A) $255 000 B) $285 000 C) $425 000 D) $475 000
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