Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $193,000 and appropriately accounted for the investment using the fair-value method ... On January 1, 2018, Milani purchased an additional 30 percent of Seida for $675,000 which resulted in significant influence over Seida. ... On that date, the fair value of Seida’s common stock was $2,010,000 in total. Seida’s January 1, 2018, book value equaled $1,860,000, although land was undervalued by $138,000. Any additional excess fair value over Seida’s book value was attributable to a trademark with an 8-year remaining life. During 2018,Seida reported income of $262,000 and declared and paid dividends of $118,000. Prepare the 2018 journal entries for Milani related to its investments in Seida. Record acquisition of Seida stock. Record income for the year: 40% of the $262,000 reported income. Record 2018 amortization for trademark excess fair value. Record dividend declaration from Seida. Record collection of dividend from investee.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $193,000 and appropriately accounted for the investment using the fair-value method ... On January 1, 2018, Milani purchased an additional 30 percent of Seida for $675,000 which resulted in significant influence over Seida. ... On that date, the fair value of Seida’s common stock was $2,010,000 in total. Seida’s January 1, 2018, book value equaled $1,860,000, although land was undervalued by $138,000. Any additional excess fair value over Seida’s book value was attributable to a trademark with an 8-year remaining life. During 2018,Seida reported income of $262,000 and declared and paid dividends of $118,000. Prepare the 2018 journal entries for Milani related to its investments in Seida. Record acquisition of Seida stock. Record income for the year: 40% of the $262,000 reported income. Record 2018 amortization for trademark excess fair value. Record dividend declaration from Seida. Record collection of dividend from investee.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 19E
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Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $193,000 and appropriately accounted for the investment using the fair-value method ... On January 1, 2018, Milani purchased an additional 30 percent of Seida for $675,000 which resulted in significant influence over Seida. ... On that date, the fair value of Seida’s common stock was $2,010,000 in total. Seida’s January 1, 2018, book value equaled $1,860,000, although land was undervalued by $138,000. Any additional excess fair value over Seida’s book value was attributable to a trademark with an 8-year remaining life. During 2018,Seida reported income of $262,000 and declared and paid dividends of $118,000. Prepare the 2018
- Record acquisition of Seida stock.
- Record income for the year: 40% of the $262,000 reported income.
- Record 2018 amortization for trademark excess fair value.
- Record dividend declaration from Seida.
- Record collection of dividend from investee.
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