Reference no: EM133064179

Question - Milani, Inc., acquired 10 percent of Seida Corporation on January 2017, for $200,00 and appropriately accounted for the investment using the fair-value method. On January, 1 2018, Milani purchased and 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 $139,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight year remaining life. During 20018, Seida reported income of $331,000 and declared and paid dividends of $102,000. Prepare journal entries for Miliani retaliated to its investment in Sida?