A Joint Operation Holds Equipment with a Carrying Amount of $1

A joint operation holds Equipment with a carrying amount of $1 200 000. The two joint operators participating in this arrangement share control equally. They also depreciate Equipment using the straight-line method. The Equipment has a useful life of 5 years. At reporting date each joint operator must recognise the following entry, in relation to depreciation, in its records:

A) DR Depreciation $240 000;
B) DR Depreciation $120 000;
C) DR Investment in joint operation $240 000;
D) DR Assets in joint operation $120 000.

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