1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spin [16.1K]
3 years ago
9

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $188,000 and appropriately accounted for the inve

stment 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.
Business
1 answer:
IRISSAK [1]3 years ago
8 0

Answer:

<u>Purchase entry:</u>

Seida Investment   600,000

Trademark                37,000

            Cash                          637,0000

<u>Net Income Entry:</u>

Seida Investment 123,200

          Gain on investment   123,200

<u>Dividends Entry:</u>

cash   43,200

  Seida Investment 123,200

Explanation:

current investment fair value: 2,000,000 x 40% = 800,000

previous value in books:    2,000,000 x 10% =      (200,000)

adjustment on Sieda investment:                            600,000

Purchase for                                                              637,000

TradeMark                                                                   37,000

Milani participation in the income: 308,000 x 40% = 123,200

Milani participation in the dividends: 108,000 x 40% =   43,200

You might be interested in
A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following state
iVinArrow [24]

Answer:

a. The bond’s expected capital gains yield is zero.

Explanation:

Since the bonds are issued at par so capital gains yield is zero.

5 0
3 years ago
Read 2 more answers
How much taxes you pay on a 100k salary in new york state?
Xelga [282]
A lot more than 100k I believe
5 0
2 years ago
what would you do if you were offered a promotion that you were not certain about accepting? What factors would you take into ac
Sati [7]

Answer:

Answer

Explanation:

I would most likely accept the promotion.

Several factors would influence my decision.

- The new scope of responsibilities

This will include all the additional risks and tasks that I will get by accepting the promotion. Taking new responsibilities might sound scary, and many people will be discouraged by this. But at some point, all great leaders are someone without any experience too. As long as we are open to criticism, we will adapt to our new responsibilities.

- the new pay raise

Economic gain usually comes with promotion. It will motivate me to do more for the company.

- The likelihood of me getting another promotion chance

Chances like this do not come often in our life. The fact that I'm offered a promotion means that the higher up has reviewed my previous work result and determine that I'm the best option for them. I would not let this chance go to waste.

3 0
3 years ago
Read 2 more answers
What is the term baltes &amp; baltes use to designate the ways workers narrow their job tasks to only the most important ones an
navik [9.2K]

The term is "selection".

Paul B. Baltes was a German therapist whose expansive scientific plan was dedicated to building up and advancing the life-span orientation of human advancement. He was likewise a scholar in the field of the psychology of aging. Baltes was born in 1939 and died in 2006 at the age of sixty-seven.

8 0
3 years ago
Economists use price indices to remove _______ from price measurements.
Salsk061 [2.6K]
The answer is C. Inflation

Price indices are a normalized average of price relatives for a given types of products ( either goods or services) in a specific region, during specific interval of time

It's provided a statistic that is designed to compare the prices while separating the inflation as a factor
3 0
3 years ago
Other questions:
  • A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers’ surplus for avocado buyers, ______
    5·1 answer
  • Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles,
    7·1 answer
  • An increase in the expected price level shifts short-run aggregate supply to the
    14·1 answer
  • [Blank] activities usually appear at the end of your resume and help to depict soft skills such as teamwork and communication th
    8·1 answer
  • The social costs of unemployment are combine with the loss of goods and services and negative governmental impacts that include
    15·1 answer
  • Stream outflow is important to coastal landscapes because streams provide ________ to the coastal environment.
    6·1 answer
  • Reeves Incorporated is issuing a note payable to four individuals for $5,000 each. Which individual will end up paying the MOST
    12·1 answer
  • Last month Carlos Company had a $60,000 profit on sales of $300,000. Fixed costs are $120,000 a month. What sales revenue is nee
    14·1 answer
  • Which descriptions are examples of Logistics Planning and Management Services workers? Check all that apply.
    12·2 answers
  • An organization's mission differs from strategic planning in that strategic planning is the basic purpose of the organization
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!