Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $193,000 and appropriately accounted for the investment using the fair-value method … On January 1, 2018, Milani purchased an additional 30 percent of Seida for $675,000 which resulted in significant influence over Seida. … On that date, the fair value of Seida’s common stock was $2,010,000 in total. Seida’s January 1, 2018, book value equaled $1,860,000, although land was undervalued by $138,000. 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 $262,000 and declared and paid dividends of $118,000. Prepare the 2018 journal entries for Milani related to its investments in Seida.

1. Record acquisition of Seida stock.
2. Record income for the year: 40% of the $262,000 reported income.
3. Record 2018 amortization for trademark excess fair value.
4. Record dividend declaration from Seida.

1. Record collection of dividend from investee.