Wilson Owned Equipment with an Estimated Life of 10 Years

question 61

Multiple Choice

Wilson owned equipment with an estimated life of 10 years when it was acquired for an original cost of $80,000. The equipment had a book value of $50,000 at January 1, 2010. On January 1, 2010, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2010 Simon Company, a 90% owned subsidiary of Wilson Company, bought the equipment from Wilson for $68,250 and for depreciation purposes used the estimated remaining life as of that date. The following data are available pertaining to Simon's income and dividends: Compute the amortization of gain through a depreciation adjustment for 2012 for consolidation purposes.

• A) $1,925.
• B) $1,825.
• C) $2,000.
• D) $1,500.
• E) $7,000.

Know about horizontal and vertical specialization and their implications for departmentalization and division of labor.

Comprehend the principles behind various organizational designs including simple design, adhocracy, and bureaucracy.

Recognize the influence of technology on organizational structure and design, including operations technology and information technology.

Understand the characteristics and implications of process designs and technology classifications in organizations.

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Definitions:

Verbal Aggression

The use of words to harm or attack someone, which can include insults, threats, or prejudicial comments.

Physical Aggression

Behavior involving the use of physical force with the intent to harm or intimidate another individual.

Violent Shows

Television programs or movies that depict acts of physical force intended to hurt, damage, or kill someone or something.

Exposure

The state of being subject to an influence or experience, which can affect an individual's health, behavior, or beliefs.