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What is the journal entry for the income of the year

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Point 1: Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $186,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $661,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,030,000 in total. Seida's January 1, 2018 book value equaled $1,880,000, 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 $345,000 and declared and paid dividends of $100,000. What are the 2018 journal entries for Milani related to its investment in Seida.

Question (a) What is the journal entry for the acquisition of Seida's stock?

Question (b) What is the journal entry for the income of the year: 45% of the $345000 reported income?

Question (c) What is the journal entry for 2018 amortization for trademark excess fair value?

Question (d) What is the journal entry for the dividend declaration of Seida's stock?

Question (e) What is the journal entry for the collection of dividend from the investee?

Reference no: EM132480519

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