1) John and Paul are participants in a joint operation for the

purchase and sales of furniture. Purchases amount P1, 160,000

paid equally by John and Paul. They agreed that each will record
his purchase, sales, and expenses in his own books and share
profits and losses equally. The following data relate to the joint
venture:

John Paul
Joint operation account – Cr 449,500 507,500
Expenses paid from joint operation cash 21,750 43,500

The final balance of investment in joint operation (book of John under) equity
method is
a) 1,114,325
b) 1,025,150
c) 1,098,375
d) 1,098,000
e) Answer not given