Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately...

 

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Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $591,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,970,000 in total. Seida's January 1, 2024, book value equaled $1,820,000, although land was undervalued by $139,000. 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 $319,000 and declared and paid dividends of $100,000. 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. Milani, Incorporated, acquired 10 percent of Seida Corporation on January 1, 2023, for $192,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2024, Milani purchased an additional 30 percent of Seida for $591,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,970,000 in total. Seida's January 1, 2024, book value equaled $1,820,000, although land was undervalued by $139,000. 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 $319,000 and declared and paid dividends of $100,000. 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.

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Milanis 2024 Journal Entries for Investment in Seida 1 Purchase of Additional Investment January 1 2024 This entry reflects the purchase of an additio... View the full answer