$14$

Part $1$ of $2$

$0\mathrm{.}66$

points

Use the following information for the Problems below. $($Algo$)$

$[$The following information applies 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 $55,000$ shares of total$)$ of Kildaire's common stock for $$1,540,000.$

October $23$ Kildaire declared and paid a cash dividend of $$3\mathrm{.}70$ per share.

December $31$ Kildaire's net income for the year is $$1,173,000,$ and the fair value of its stock at December $31$ is $$34$ per share.

Year $2$

October $15$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}80$ per share.

December $31$ Kildaire's net income for the year is $$1,137,000,$ and the fair value of its stock at December $31$ is $$36$ per share.

Year $3$

January $2$ Selk sold $4\%($equal to $2,200$ shares$)$ of its investment in Kildaire for $$69,200$ cash.

Problem $15-5$A $($Algo$)$ Accounting for long$-$term investments in stock with significant influence LO P$5$

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.