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Wilson owned equipment with an estimated life of 10 years when the equipment was acquired for an original cost of $80,000. The equipment had a book value of $50,000 at January 1, 2020. On January 1, 2020, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2020 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 declared: Net income Dividende declared Assuming there are no excess amortizations associated with the consolidation, and no other intre-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2022. Multiple Choice OOOOO $118.825. $115,000. $117,000. $119,000. 2020 2021 2022 $100,000 $120,000 $130,000 40,000 50,000 60,000 $118.800.

Wilson owned equipment with an estimated life of 10 years when the equipment was acquired for an original cost of $80,000. The equipment had a book value of $50,000 at January 1, 2020. On January 1, 2020, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2020 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 declared: Net income Dividende declared Assuming there are no excess amortizations associated with the consolidation, and no other intre-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2022. Multiple Choice OOOOO $118.825. $115,000. $117,000. $119,000. 2020 2021 2022 $100,000 $120,000 $130,000 40,000 50,000 60,000 $118.800.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Wilson owned equipment with an estimated life of 10 years when the equipment was acquired for an original cost of $80,000. The equipment had a book value of $50,000 at January 1, 2020. On January 1, 2020, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2020 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 declared: Net income Dividends declared Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2022. Multiple Choice OOO OO $118.825. $115,000. $117,000. $119,000. 2020 2021 2022 $100,000 $120,000 $130,000 40,000 50,000 60,000 $118.800.
Transcribed Image Text:Wilson owned equipment with an estimated life of 10 years when the equipment was acquired for an original cost of $80,000. The equipment had a book value of $50,000 at January 1, 2020. On January 1, 2020, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2020 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 declared: Net income Dividends declared Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2022. Multiple Choice OOO OO $118.825. $115,000. $117,000. $119,000. 2020 2021 2022 $100,000 $120,000 $130,000 40,000 50,000 60,000 $118.800.
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