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Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $189.000 and appropriately accounted for the investment using the fair-value method. On
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $189.000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $662,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,040,000 in total. Seida's January 1, 2018 book value equaled $1,890,000, although land was undervalued by $131,000. 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 $288,000 and declared and paid dividends of $108,000. 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.) Journal entry worksheet 2 3 4 5 Record acquisition of Seida stock. Note: Enter debits before credits. Transaction General Journal Debit / Credit Record entry Clear entry View general journal Journal entry worksheet Record income for the year: 40% of the $288,000 reported income. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record 2018 amortization for trademark excess fair value. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet
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