compute the amortization of gain through a depreciation adjustment for 2017,2018 and 2019 for consolidation purposes.

- Intra-Entity Transfers $60,000 = $10,140,000 REFERENCE: 05-09 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, 2017. on January 2017, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2017 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 2017 $100,000 40,000 2018 $120,000 50,000 2019 $130,000 60,000 OUESTIONI