Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $655,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,980,000 in total. Seida's January 1, 2021, book value equaled $1,830,000, although land was undervalued by $130,000. 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 $282,000 and declared and paid dividends of $119,000.

Prepare the 2021 journal entries for Milani related to record the 40% income earned Seida