Mingyu, Jun and Wonwoo each engaged in the extraction of oil, agreed to acquire and jointly operate an oil pipeline. Each party will use the pipeline to transport its own product in return for which it bears an agreed proportion of the expenses of operating the pipeline. Mingyu, Jun, and Wonwoo agreed to share equally the cost of acquiring the pipeline and the expenses of operating it. Is the arrangement considered to be a joint operation or a joint venture?

Mingyu, Jun and Wonwoo each engaged in the extraction of oil, agreed to acquire and jointly operate an oil pipeline. Each party will use the pipeline to transport its own product in return for which it bears an agreed proportion of the expenses of operating the pipeline. Mingyu, Jun, and Wonwoo agreed to share equally the cost of acquiring the pipeline and the expenses of operating it. Is the arrangement considered to be a joint operation or a joint venture?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 38P

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