vn Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for$186,000 and appropriately accounted for the investment using the fair-valuemethod. On January 1, 2021, Milani purchased an additional 30 percent of Seida for$609,000 which resulted in significant influence over Seida. On that date, the fairvalue of Seida's common stock was $2,030,000 in total. Seida's January 1, 2021,book value equaled $1,880,000, although land was undervalued by $135,000. Anyadditional excess fair value over Seida's book value was attributable to a trademarkwith an eight-year remaining life. During 2021, Seida reported income of $345,000and declared and paid dividends of $100,000.Prepare the 2021 journal entries for Milani related to its investment in Seida. (If noentry is required for a transaction/event, select "No journal entry required" in thefirst account field.)View transaction listJournal entry worksheet<1234LO5Record acquisition of Seida stock.Note: Enter debits before credits.Transaction1General JournalDebitCredit

Step 1: Understanding the Change in Ownership and Accounting MethodPrevious Ownership…

Answered: Milani, Inc., acquired 10 percent of…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $187,000 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 $132,000. 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 $258,000 and declared and paid dividends of $101,000. 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.)
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $183,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $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. Seida’s January 1, 2021, book value equaled $1,870,000, although land was undervalued by $136,000. 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 $315,000 and declared and paid dividends of $106,000. 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.) Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $183,000 and appropriately…
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $193,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $603,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,010,000 in total. Seida's January 1, 2021, book value equaled $1,860,000, 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 $262,000 and declared and paid dividends of $118,000. 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 X: > 1 Record acquisition of Seida stock. Record the 40% income earned during period by…
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $189,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $612,000 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, 2021, 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 eight-year remaining life. During 2021, Seida reported income of $288,000 and declared and paid dividends of $108,000. Record 2021 amortization for trademark excess fair value
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida’s common stock was $2,000,000 in total. Seida’s January 1, 2021, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. Prepare the 2021 journal entries for Milani related to its investment in Seida 4. Record dividend declaration from Seida.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida’s common stock was $2,000,000 in total. Seida’s January 1, 2021, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. Prepare the 2021 journal entries for Milani related to its investment in Seida. 1. Record acquisition of Seida stock.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida’s common stock was $2,000,000 in total. Seida’s January 1, 2021, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. Prepare the 2021 journal entries for Milani related to its investment in Seida 5. Record collection of dividend from investee.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida’s common stock was $2,000,000 in total. Seida’s January 1, 2021, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. 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.) 3. Record 2021 amortization for trademark excess fair value.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $190,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $600,000 which resulted in significant influence over Seida. On that date, the fair value of Seida’s common stock was $2,000,000 in total. Seida’s January 1, 2021, book value equaled $1,850,000, although land was undervalued by $120,000. 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 $300,000 and declared and paid dividends of $110,000. Prepare the 2021 journal entries for Milani related to its investment in Seida. 2. Record the 40% income earned by Seida.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $195,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $624,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,080,000 in total. Seida’s January 1, 2021, book value equaled $1,930,000, although land was undervalued by $130,000. 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 $342,000 and declared and paid dividends of $100,000. 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.) Record acquisition of Seida stock. Record the 40% income earned during period by Seida. Record 2021…
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $195,000 and appropriately accounted for the investment using the fair - value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $624,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $ 2,080,000 in total. Seida's January 1, 2021, book value equaled $1,930,000, although land was undervalued by $130,000. 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 $342,000 and declared and paid dividends of $100,000. 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.) Record acquisition of Seida stock. Record the 40% income earned during period by Seida. Record 2021…
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $624,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,080,000 in total. Seida’s January 1, 2021, book value equaled $1,930,000, although land was undervalued by $136,000. 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 $286,000 and declared and paid dividends of $100,000. Prepare the 2021 journal entries for Milani related to its investment in Seida.

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