Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $195,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $606,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,020,000 in total. Seidas January 1, 2024, book value equaled $1,870,000, 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 2024, Seida reported income of $287,000 and declared and paid dividends of $118,000.

Required:

Prepare the 2024 journal entries for Milani related to its investment in Seida.

Note: 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 the accrual of 40 percent of the reported earnings of the investee.

3. Record the amortization of fair value in excess of book value allocated to Trademark.

4. Record investee dividend declaration.

5. Record collection of dividend from investee.