Wilson Owned Equipment with an Estimated Life of 10 Years

question 114

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 Wilson's share of income from Simon for consolidation for 2010.

• A) $72,000.
• B) $90,000.
• C) $73,575.
• D) $73,800.
• E) $72,500.

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Definitions:

Sex-Related Thoughts

Mental activities or considerations specifically related to sexual desires, attractions, or activities.

Vaginal Penetration

The insertion of an object, body part, or genitalia into the vagina, a common aspect of sexual intercourse.

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A medical condition in males characterized by the inability to achieve or maintain an erection suitable for sexual intercourse.

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