Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately accounted for the nvestment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $591,000 which esulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,970,000 in total. Seida's January 1, 2024, book value equaled $1,820,000, although land was undervalued by $139,000. 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 $319,000 and declared and paid dividends of $100,000. 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. View transaction list Journal entry worksheet < 1 2 3 Record investee dividend declaration. Note: Enter debits before credits. Transaction d 4 5 General Journal Debit Credit
Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately accounted for the nvestment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $591,000 which esulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,970,000 in total. Seida's January 1, 2024, book value equaled $1,820,000, although land was undervalued by $139,000. 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 $319,000 and declared and paid dividends of $100,000. 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. View transaction list Journal entry worksheet < 1 2 3 Record investee dividend declaration. Note: Enter debits before credits. Transaction d 4 5 General Journal Debit Credit
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
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Question
![Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately accounted for the
investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $591,000 which
resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,970,000 in total. Seida's
January 1, 2024, book value equaled $1,820,000, although land was undervalued by $139,000. 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 $319,000
and declared and paid dividends of $100,000.
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.
View transaction list
Journal entry worksheet
< 1 2 3
5
Record investee dividend declaration.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ed2cd10-5853-4f8b-bfb6-1b3d5f6781e8%2Fb3bbaad2-dd4e-46bd-92d3-b93b656d71c7%2Fbh7lnbe_processed.png&w=3840&q=75)
Transcribed Image Text:Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately accounted for the
investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $591,000 which
resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,970,000 in total. Seida's
January 1, 2024, book value equaled $1,820,000, although land was undervalued by $139,000. 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 $319,000
and declared and paid dividends of $100,000.
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.
View transaction list
Journal entry worksheet
< 1 2 3
5
Record investee dividend declaration.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
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