Milani, Inc., acquired 10 percent of Selda Corporation on January 1, 2020, for $184,000 and appropriately...

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Milani, Inc., acquired 10 percent of Selda Corporation on January 1, 2020, for $184,000 and appropriately accounted for the Investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Selda for $612,000 which resulted in significant Influence over Selda. On that date, the fair value of Selda's common stock was $2,040,000 in total. Selda's January 1, 2021, book value equaled $1,890,000, although land was undervalued by $138,000. Any additional excess fair value over Selda's book value was attributable to a trademark with an eight-year remaining life. During 2021, Selda reported Income of $299,000 and declared and paid dividends of $118,000. Prepare the 2021 journal entries for Milani related to its Investment In Selda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal 1 1 Investment in Seida Cash 2 2 Investment in Seida Equity in Investee Income 3 3 Equity in Investee Income Investment in Seida Debit Credit 612,000 612,000 1,198,000 1,196,000 600 600 4 4 Dividend receivable 47,200 Investment in Seida 47,200 5 5 Cash Dividend receivable 47,200 47,200 Milani, Inc., acquired 10 percent of Selda Corporation on January 1, 2020, for $184,000 and appropriately accounted for the Investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Selda for $612,000 which resulted in significant Influence over Selda. On that date, the fair value of Selda's common stock was $2,040,000 in total. Selda's January 1, 2021, book value equaled $1,890,000, although land was undervalued by $138,000. Any additional excess fair value over Selda's book value was attributable to a trademark with an eight-year remaining life. During 2021, Selda reported Income of $299,000 and declared and paid dividends of $118,000. Prepare the 2021 journal entries for Milani related to its Investment In Selda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal 1 1 Investment in Seida Cash 2 2 Investment in Seida Equity in Investee Income 3 3 Equity in Investee Income Investment in Seida Debit Credit 612,000 612,000 1,198,000 1,196,000 600 600 4 4 Dividend receivable 47,200 Investment in Seida 47,200 5 5 Cash Dividend receivable 47,200 47,200