Milani, Incorporated, acquired percent of Seida Corporation on January for $ and appropriately accounted for the investment using the fairvalue method. On January Milani purchased an additional percent of Seida for $ which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $ in total. Seida's January book value equaled $ although land was undervalued by $ Any additional excess fair value over Seida's book value was attributable to a trademark with an eightyear remaining life. During Seida reported income of $ and declared and paid dividends of $
Required:
Prepare the journal entries for Milani related to its investment in Seida.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Record acquisition of Seida stock.
Record the accrual of percent of the reported earnings of the investee.
Record the amortization of fair value in excess of book value allocated to Trademark.
Record investee dividend declaration.
Credit
Record collection of dividend from investee.
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