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Accounting for long-term investments in securities; with and without significant influence Selk Steel Co., which began operations on January 4, 2017, had the following subsequent

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Accounting for long-term investments in securities; with and without significant influence Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments Selk purchased 60,000 shares (20% of total) of Kildare's common stock Jan. 5for $1,560,000 Oct. 23Kildaire declared and paid a cash dividend of $3.20 per share. Kildaire's net income for 2017 is $1,164,000, and the fair value of its stock at Dec.31December 31 is $30.00 per share. Kildaire's net income for 2018 is $1,476,000, and the fair value of its stock at Dec.31December 31 is $32.00 per share. Jan.2Selk sold all of its investment in Kildaire for $1,894,000 cash. Assume that Selk has a significant influence over Kildare with its 20% share of stock. Required 1. Prepare journal entries to record these transactions and events for Selk. 2. Compute the carrying (book) value per share of Selk's investment in Kildaire common stock as reflected in the investment account on .January 1, 2019. Compute the net increase or decrease in Selk's equity from January 5, 2017, through January 2, 2019, resulting from its investment in Kildaire. Assume that although Selk owns 20% of Kildare's outstanding stock, circumstances indicate that it does not have a significant influence over the investee and that it is classified as an available-for-sale security investment. Required 1. Prepare journal entries to record the preceding transactions and events for Selk. Als prepare an entry dated January 2, 2019, to remove any balance related to the fair 2. Compute the cost per share of Selk's investment in Kildaire common stock as 3. Compute the net increase or decrease in Selk's equity from January 5, 2017, throug value adjustment. reflected in the investment account on January 1, 2019 January 2, 2019, resulting from its investment in Kildaire

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