Required information [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 70,000 shares (20% of total) of Kildaire's common stock for $2,030,000. October 23 Kildaire declared and paid a cash dividend of $3.80 per share. December 31 Kildaire's net income for the year is $1,178,000, and the fair value of its stock at December 31 is $37 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $3.50 per share. December 31 Kildaire's net income for the year is $1,177,000, and the fair value of its stock at December 31 is $39 per share. Year 3 January 2 Selk sold 3% (equal to 2,100 shares) of its investment in Kildaire for $67,700 cash. Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant influence over the investee. Required: Prepare journal entries to record the preceding transactions and events for Selk.