Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $189,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $612,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,040,000 in total. Seida’s January 1, 2021, book value equaled $1,890,000, although land was undervalued by $131,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight-year remaining life. During 2021, Seida reported income of $288,000 and declared and paid dividends of $108,000. Record 2021 amortization for trademark excess fair value
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $189,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $612,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,040,000 in total. Seida’s January 1, 2021, book value equaled $1,890,000, although land was undervalued by $131,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight-year remaining life. During 2021, Seida reported income of $288,000 and declared and paid dividends of $108,000.
Record 2021 amortization for trademark excess fair value
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