Wilson Owned Equipment with an Estimated Life of 10 Years

question 22

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: $\begin{array}{lrrr}&2010&2011&2012\\\text { Net income } & \$ 100,000 & \$ 120,000 & \$ 130,000 \\\text { Dividends } & 40,000 & 50,000 & 60,000\end{array}$
-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.

Understand the concept and characteristics of cryptocurrencies.

Comprehend the impact of exchange rates on global trade and currency value.

Identify factors leading to currency appreciation or depreciation.

Distinguish between fiat currencies and cryptocurrencies.

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Definitions:

Blood Oxygen

The level of oxygen saturation in the blood, which is vital for the efficient functioning of body organs.

Echocardiography

A diagnostic test that uses ultrasound waves to create images of the heart, helping in the assessment of its structure and function.

Blood Flow

The continuous movement of blood through the circulatory system of the body, delivering oxygen and nutrients to tissues while removing waste products.

Arrhythmia

An irregularity or abnormality in the heart's rhythm, which can range from harmless to life-threatening.