Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $193,000 and appropriately accounted for the investn using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $603,000 which resulted n 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, 20 book value equaled $1,860,000, although land was undervalued by $138,000. Any additional excess fair value over Seida's book v was attributable to a trademark with an eight-year remaining life. During 2021, Seida reported income of $262,000 and declared r paid dividends of $118,000. Prepare the 2021journal entries for Milani related to its investment in Seida. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record acquisition of Seida stock. > 2 Record the 40% income earned during period by Seida. 3 Record 2021 amortization for trademark excess fair value. 4 Record dividend declaration from Seida. Credit 5 Record collection of dividend from investee. Note : = journal entry has been entered Record entry Clear entry View general journal
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $193,000 and appropriately accounted for the investn using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $603,000 which resulted n 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, 20 book value equaled $1,860,000, although land was undervalued by $138,000. Any additional excess fair value over Seida's book v was attributable to a trademark with an eight-year remaining life. During 2021, Seida reported income of $262,000 and declared r paid dividends of $118,000. Prepare the 2021journal entries for Milani related to its investment in Seida. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record acquisition of Seida stock. > 2 Record the 40% income earned during period by Seida. 3 Record 2021 amortization for trademark excess fair value. 4 Record dividend declaration from Seida. Credit 5 Record collection of dividend from investee. Note : = journal entry has been entered Record entry Clear entry View general journal
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
Related questions
Question
Transcribed Image Text:Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $193,000 and appropriately accounted for the investment
using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $603,000 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, 2021,
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 eight-year remaining life. During 2021, Seida reported income of $262,000 and declared and
paid dividends of $118,000.
Prepare the 2021 journal entries for Milani related to its investment in Seida. (If no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
View transaction list
X:
>
1
Record acquisition of Seida stock.
Record the 40% income earned during period by Seida.
3
Record 2021 amortization for trademark excess fair
value.
4
Record dividend declaration from Seida.
Credit
Record collection of dividend from investee.
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
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