Investment in Joint Venture
Tye Corporation invested in an unincorporated joint venture and elected to use pro rata consolidation in preparing its financial statements. For the year ended December 31, 20X3, Tye reported income of $52,000 from its separate operations and net income of $60,000. The joint venture reported assets of $293,000 and liabilities of $45,000 on January 1, 20X3, and assets of $330,000 and liabilities of $50,000 on December 31, 20X3. It made no distributions to owners during the year.
Required
a. Determine the percentage ownership of thejoint venture held by Tye.
b. If Tye reports total assets (excluding its investment in the unincorporated joint venture) of $700,000 at December 31, 20X3, what amount of total assets will Tye report in its balance sheet on that date?
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