The person, AW, was employed as a collector for FCS. While attending a collection call, she informed a debtor that $15 processing fee was an “interest” charge. The information provided by her violated the company policy and AW was sacked. She claimed for unemployment benefits. The same was approved by MD Employment service. FCS objected to this approval and testified that AW made a false statement though she admitted the contrary. The agency found that AW’s termination of services could not be attributed to misconduct, which could deprive her of the benefits. MD Employment services approval was upheld by the reviewing court. Hence, FCS appealed. To explain : The likelihood to uphold the findings of MD Employment services.

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Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,000,000 in total. Seida's January 1, 2024, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. 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

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Chapter 2, Problem 8BCP

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Case Summary: The person, AW, was employed as a collector for FCS. While attending a collection call, she informed a debtor that $15 processing fee was an “interest” charge. The information provided by her violated the company policy and AW was sacked. She claimed for unemployment benefits. The same was approved by MD Employment service. FCS objected to this approval and testified that AW made a false statement though she admitted the contrary. The agency found that AW’s termination of services could not be attributed to misconduct, which could deprive her of the benefits. MD Employment services approval was upheld by the reviewing court. Hence, FCS appealed.

To explain: The likelihood to uphold the findings of MD Employment services.

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Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,000,000 in total. Seida's January 1, 2024, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. 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

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