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Question 4 Read Co

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Question 4

Read Co. and Learn Co., national distributors of textbooks, enter into a contract to acquire a warehouse in a particular region. Each party will use the warehouse to store its own inventories. The parties agree to share in the costs of acquiring and maintaining the warehouse. Under PFRS 11, the arrangement between Read and Learn is most likely a

a. Joint venture

b. None of these

c. Joint operation

d. Jointly controlled asset