Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for

$184,000 and appropriately accounted for the investment using the fair-value

method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for

$645,000 which resulted in significant influence over Seida. On that date, the fair

value of Seida's common stock was $1,990,000 in total. Seida's January 1, 2018

book value equaled $1,840,000, although land was undervalued by $139,000. Any

additional excess fair value over Seida's book value was attributable to a trademark

with an 8-year remaining life. During 2018, Seida reported income of $275,000 and

declared and paid dividends of $109,000. Prepare the 2018 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 income for the year: 40% of the $275,000

reported income

3 Record 2018 amortization for trademark excess fair

value.

4 Record dividend declaration from Seida

5 Record collection of dividend from investee.