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Please show all work for all questions Case II Wilson owned equipment with an estimated life of 10 years when it was acquired for an
Please show all work for all questions
Case II 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, 2012. On January 1, 2012, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2012 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: 2012 2013 2014 Net income $100,000 $120,000 $130,000 Dividends 40,000 50,000 60,000 Instruction: 1) Compute the gain on transfer of equipment reported by Wilson for 2012. 2) Compute the amortization of gain through a depreciation adjustment for 2012/2013/2014 for consolidation purposes. 3) Compute Wilson's share of income from Simon for consolidation for 2012, 2013, and 2014
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