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please help me with this accounting problem Problem C-5A Accounting for long-term imvestments in stock with significant influence P5 Selk Steel Co., which began operations
please help me with this accounting problem
Problem C-5A Accounting for long-term imvestments in stock with significant influence P5 Selk Steel Co., which began operations in Year 1, had the following trunsactions and events in ils longterm 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 fuir value of its stock at December 31 is $30.00 per share. Year 2 Oct. 15 Kildaire declared and paid a eash 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 Kildaine for $54,200 eush. 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 Step by Step Solution
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