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Required information [The following information applles to the questions displayed below.] Selk Steel Company, which...

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Accounting

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Required information [The following information applles to the questions displayed below.] Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 January 5 selk purchased 60,000 shares (201 of total) of Kildaire's comnon stock for $1,560,000. october 23 xildaire declared and paid a cash dividend of $3,20 per share. Decenber 31 Kildaire's net incone for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 October 15 \&ildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net incone for the year ta $1,476,000, and the fair value of its stock at Becember 31 is $32.00 per share. Year 3 January 2 selk sold 38 (equal to 1,800 sharen) of its investment in Kildaire for 554,200 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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