Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $187,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $653,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,100,000 in total. Seidas January 1, 2021, book value equaled $1,950,000, although land was undervalued by $135,000. 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 $267,000 and declared and paid dividends of $120,000.

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.)

• 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.

• 5

  Record collection of dividend from investee.