Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $200,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $644,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,920,000 in total. Seida's January 1, 2021, book value equaled $1,770,000, although land was undervalued by $138,000. 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 $324,000 and declared and paid dividends of $107,000. 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.) View transaction list Journal entry worksheet 1 2 3 4 5 > Record the 40% income earned during period by Seida. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal On January 1, 2020, Ridge Road Company acquired 20 percent of the voting shares of Sauk Trail, Inc., for $3,400,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board, which gave it the ability to significantly influence Sauk Trail's operating and investing activities. The January 1, 2020, carrying amounts and corresponding fair values for Sauk Trail's assets and liabilities follow: Cash and receivables Computing equipment Patented technology Trademark Liabilities Carrying Amount $ 145,000 5,315,000 135,000 185,000 (220,000) Fair Value 145,000 6,260,000 4,070,000 2,070,000 (220,000) Also, as of January 1, 2020, Sauk Trail's computing equipment had a seven-year remaining estimated useful life. The patented technology was estimated to have a four-year remaining useful life. The trademark's useful life was considered indefinite. Ridge Road attributed to goodwill any unidentified excess cost. During the next two years, Sauk Trail reported the following net income and dividends: 2020 2021 Net Income $1,870,000 2,055,000 Dividends Declared $ 185,000 195,000 a. How much of Ridge Road's $3,400,000 payment for Sauk Trail is attributable to goodwill? b. What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for 2020 and 2021? c. What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2020 and 2021? Complete this question by entering your answers in the tabs below. Reg A Reg B and c b. What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for 2020 and 2021? c. What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2020 and 2021? 2020 2021 b Equity in Sauk Trails earnings Investment in Sauk Trail C. Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $200,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $644,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,920,000 in total. Seida's January 1, 2021, book value equaled $1,770,000, although land was undervalued by $138,000. 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 $324,000 and declared and paid dividends of $107,000. 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.) View transaction list Journal entry worksheet Record dividend declaration from Seida. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Record entry Clear entry View general journal Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $200,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $644,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,920,000 in total. Seida's January 1, 2021, book value equaled $1,770,000, although land was undervalued by $138,000. 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 $324,000 and declared and paid dividends of $107,000. 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.) View transaction list Journal entry worksheet Record collection of dividend from investee. Note: Enter debits before credits. Transaction General Journal Debit Credit 5 Record entry Clear entry View general journal