Problem 15-4A Accounting for long-term investments in securities; with and without significant influence LO P3, P4

[The following information applies to the questions displayed below.]

Selk Steel Co., which began operations on January 4, 2015, had the following subsequent transactions and events in its long-term investments.

2015Jan.5Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000.Oct.23Kildaire declared and paid a cash dividend of $3.20 per share.Dec.31Kildaire's net income for 2015 is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share.

2016Oct.15Kildaire declared and paid a cash dividend of $2.60 per share.Dec.31Kildaire's net income for 2016 is $1,476,000, and the fair value of its stock at December 31 is$32.00 per share.

2017Jan.2Selk sold all of its investment in Kildaire for $1,894,000 cash.