Required information [The following information applies to the questions displayed below. Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017 Tan. 5 Selk purchased 60,000 shares (20% of total) of Kildare, s common stock for $1,560,000. 0ct 23 Kildaire declared and paid a cash dividend of $3.20 per share. Dec. 31 Kildare, s net income for 2017 is $1,164,000, and the fair value of its stock at December 31 s$30.00 per share. 2018 0et. 15 Kildaire declared and paid a cash dividend of $2.60 per share Dec. 31 Kildaire' s net income for 2018 is $1, 476, 000, and the fairvalue of its stock at December 31 is $32.00 per share. 2019 Jan. 2 Selk sold all of its nestment in Kildaire for $1,894,000 cash Part 2 Assume that although Selk owns 20% of Kildare's outstanding stock, circumstances indicate that it does not have a s gnificant 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. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Complete this question by entering your answers in the tabs below. 2018 2017 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. View transaction list Journal entry worksheet Selk purchased 60,000 shares (20% of total) of Kildare's common stock for $1,560,000 Note: Enter debits before credits. Date General Journal Debit Credit Jan 05, 2017 Record entry Clear entry View general journal 2018> K 2017 View transaction list Journal entry worksheet Kildaire declared and paid a cash dividend of $3.20 per share. Note: Enter debits before credits. Debit Credit General Journal Date Oct 23, 2017 Record entry Clear entry View general journal K 2017 2018> Prev 10 of 10 Journal entry worksheet Kildaire's net income for 2017 is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share Note: Enter debits before credits. Date General Journal Debit Dec 31, 2017 Record entry Clear entry View general journal K 2017 2018> Journal entry worksheet Kildaire declared and paid a cash dividend of $2.60 per share. Note: Enter debits before credits. Debit Credit Date General Journal Oct 15, 2018 Record entry Clear entry View general journal 2017 2019 > Journal entry worksheet Kildaire's net income for 2018 is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2018 Record entry Clear entry View general journal K 2017 2019> View transaction list Journal entry worksheet Selk sold all of its investment in Kildaire for $1,894,000 cash. Note: Enter debits before credits. Debit Credit Date General Journal Jan 02, 2019 Record entry Clear entry View general journal K 2018 2019> 2. Compute the cost per share of Selk's investment in Kildaire common stock as reflected in the investment account on Januery 1 2019. per share 3. Compute the net increase or decrease in Selk's equity from January 5, 2017, through January 2, 2019, resulting from its investment in Kildaire in equity is
