Business, 14.11.2020 14:00 Boondiddy9

Selk Steel Co., which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1
Jan. 5 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000.
Oct. 23 Kildaire declared and paid a cash dividend of $3.20 per share.
Dec. 31 Kildaire’s net income for the year is $1,164,000 and the fair value of its stock at December 31 is $30.00 per share.

Year 2
Oct. 15 Kildaire declared and paid a cash dividend of $2.60 per share.
Dec. 31 Kildaire’s net income for the year is $1,476,000 and the fair value of its stock at December 31 is $32.00 per share.

Year 3
Jan. 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash.

Required:
Prepare journal entries to record these transactions and events for Selk. Assume that Selk has a significant influence over Kildaire with its 20% share of stock.

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