REFERENCE: Ref.05_07 On April 1,2009 Wilson Company,a 90% Owned Subsidiary of Simon

question 104

Multiple Choice

REFERENCE: Ref.05_07
On April 1,2009 Wilson Company,a 90% owned subsidiary of Simon Company,bought equipment from Simon for $68,250.On January 1,2009,Simon realized that the useful life of the equipment was longer than originally anticipated,at ten remaining years.The equipment had an original cost to Simon of $80,000 and a book value of $50,000 with a 10-year remaining life as of January 1,2009.
The following data are available pertaining to Wilson's income and dividends:

-Compute the amortization of gain for 2009 for consolidation purposes.

• A)$1,950.
• B)$1,825.
• C)$1,500.
• D)$2,000.
• E)$5,250.

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Definitions:

Brutal Owners

Individuals who exercise harsh and cruel control over others, particularly in contexts like slavery or abusive employment practices.

Slave Church

A religious gathering or place of worship created or used by enslaved African Americans, especially during the period of American slavery.

Large Plantations

Extensive agricultural estates typically found in tropical or subtropical regions, where crops like cotton, sugar, and tobacco are cultivated, often with the use of forced or cheap labor.

Primary Transmitter

A device or entity responsible for sending the initial signal or message in a communication system or network.