Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $188,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $637,000 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, 2018 book value equaled $1,850,000, although land was undervalued by $135,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $308,000 and declared and paid dividends of $108,000. Prepare the 2018 journal entries for Milani related to its investment in Seida.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $188,000 and appropriately accounted for the investment ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Imagine you borrow $1,100 from your roommate, agreeing to pay her back $1,100 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 3.59 percent.
Answers (1)
You had a part time job that paid you $2,650 in one tax year. Do you have to file a federal tax return?
Answers (1)
The distinction between a current asset and other assets: A. is based on the ability to determine the current fair value of the asset. B. is based on when the asset is expected to be converted to cash, or used to benefit the entity. C.
Answers (1)
Jasmine went to a new salon in the area to get her hair cut and colored. However, the stylist cut her hair shorter than she wanted and wouldn't use the bold red color Jasmine wanted. As a result, Jasmine did not feel good about her purchase.
Answers (1)
Smart Solutions Inc. is evaluating a capital project for expansion. The project costs $10,000, and it is expected to generate $5,000 per year for three years. If the firm's required rate of return is 10 percent, what is the project's terminal value?
Answers (1)
New Questions in Business
After completing the closing entries for Revenues and Expenses, the Income Summary account has a credit balance of $1,500. The journal entry to close out the $1,500 credit balance of Income Summary would be:
Answers (1)
This has a head and a tail but no leg
Answers (2)
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,300 of direct materials and used $3,800 of direct labor.
Answers (1)
You visit a new town in the summer and see a person dressed as a duck juggling plastic ice cream cones on the street. This piques your curiosity. You walk toward the duck person and see she is advertising the Mallard ice cream shop.
Answers (1)
You are planning on starting your own business in 18 months and you intend to purchase a new home. You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month.
Answers (1)