HomeHomework HelpTextbooksTest PrepTextbook Answers
Zookal Homework Help

Homework Help

  1. Business
  2. Accounting
  3. journal entries include 1 investment in seida cash 2 investment...

Question: journal entries include 1 investment in seida cash 2 investment...

Question details

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $655,000 which resulted in significant influence over Seida. On that date, the fair value of Seidas common stock was $1,980,000 in total. Seidas January 1, 2018 book value equaled $1,830,000, although land was undervalued by $130,000. Any additional excess fair value over Seidas book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $282,000 and declared and paid dividends of $119,000. Prepare the 2018 journal entries for Milani related to its investment in Seida. (If no entry is required fora transaction/event, select No journal entry required in the first account field.)

Journal Entries Include

1. Investment In Seida

Cash

2. Investment in Seida

Equity Income in Investment in Seida

3. Equity Income in Investment in Seida

  Investment in Seida

4. Dividend receivable

Investment in Seida

5. Cash

Dividend Receivable

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution