Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $188,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $585,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,950,000 in total. Seida's January 1, 2024, book value equaled $1,800,000, although land was undervalued by $132,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight-year remaining life. During 2024, Seida reported income of $314,000 and declared and paid dividends of $106,000. Required: Prepare the 2024 journal entries for Milani related to its investment in Seida. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 No Answer is not complete. Transaction General Journal a Investment in Seida Cash 2 b 3 4 с Investment in Seida Equity in Investee Income Equity in Investee Income Investment in Seida d Dividend receivable Investment in Seida 5 e Cash Dividend receivable Debit 585,000 Credit 585,000 125,600 125,600 125,600 125,600
Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $188,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $585,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,950,000 in total. Seida's January 1, 2024, book value equaled $1,800,000, although land was undervalued by $132,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight-year remaining life. During 2024, Seida reported income of $314,000 and declared and paid dividends of $106,000. Required: Prepare the 2024 journal entries for Milani related to its investment in Seida. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 No Answer is not complete. Transaction General Journal a Investment in Seida Cash 2 b 3 4 с Investment in Seida Equity in Investee Income Equity in Investee Income Investment in Seida d Dividend receivable Investment in Seida 5 e Cash Dividend receivable Debit 585,000 Credit 585,000 125,600 125,600 125,600 125,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer with correct calculations and explanations. make sure the supportive statements are given at every step or calculation.
Transcribed Image Text:Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $188,000 and appropriately accounted for the
investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $585,000 which
resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,950,000 in total. Seida's
January 1, 2024, book value equaled $1,800,000, although land was undervalued by $132,000. Any additional excess fair value over
Seida's book value was attributable to a trademark with an eight-year remaining life. During 2024, Seida reported income of $314,000
and declared and paid dividends of $106,000.
Required:
Prepare the 2024 journal entries for Milani related to its investment in Seida.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
1
No
Answer is not complete.
Transaction
General Journal
a
Investment in Seida
Cash
2
b
3
4
с
Investment in Seida
Equity in Investee Income
Equity in Investee Income
Investment in Seida
d
Dividend receivable
Investment in Seida
5
e
Cash
Dividend receivable
Debit
585,000
Credit
585,000
125,600
125,600
125,600
125,600
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