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Milani, Inc, acquired 10 percent of Seida Corporation on January 1, 2017, for $192,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $638,000 which resulted in significant influence over Seida. On that date, the fair value of Seidas common stock was $1,970,000 in total. Seidas January 1, 2018 book value equaled $1,820,000, although land was undervalued by $139,000. Any additional excess fair value over Seidas book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $319,000 and declared and paid dividends of $100,000. Prepare the 2018 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.) 2 ints eBook Print References View transaction list Journal entry worksheet 3 4 Record acquisition of Seida stock. Note: Enter debits before credits Transaction General Journal Debit Credit
View transaction list 1 Record acquisition of Seida stock. Record income for the year: 40% of the $319,000 reported income. 2 Record 2018 amortization for trademark excess fair value. 3 4 Record dividend declaration from Seida. 5 Record collection of dividend from investee. Note : -journal entry has been entered
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