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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
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: Compute Wilson's share of income from Simon for consolidation for 2012. Compute Wilson's share of income from Simon for consolidation for 2012. $72,000. $90,000. $73,575. (D) $73,800. (E) $72,500
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