Business, 18.10.2021 21:40 hunnytoledo145

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $197,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $618,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,060,000 in total. Seida’s January 1, 2021, book value equaled $1,910,000, although land was undervalued by $137,000. 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 $278,000 and declared and paid dividends of $113,000. Required:
a. Record acquisition of Seida stock.
b. Record the 40% income earned during period by Seida.
c. Record 2021 amortization for trademark excess fair value.
d. Record dividend declaration from Seida.
e. Record collection of dividend from investee.

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Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $197,000 and appropri...