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 Jan. 5 Selk purchased 50,000 shares (25% of t tal) of Kildaire's common stock for $1,000,000. Oct. 23 Kildaire declared and paid a cash dividend of $3.70 per share. Dec. 31 Kildaire's net income for 2017 is $1,214,000, and the fair value of its stock at December 31 is $30.50 per share. 2018 Oct. 15 Kildaire declared and paid a cash dividend of $2.70 per share. Dec. 31 Kildaire's net income for 2018 is $1,526,000, and the fair value of its stock at December 31 is $32.50 per share. 2019 Jan. 2 Selk sold all of its investment in Kildaire for $1,498,000 cash. Part 1 Assume that Selk has a significant influence over Kildare with its 25% share of stock. Required . Prepare journal entries to record these transactions and events for Selk. (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 2017 2018 2019 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 Jan. 5 Selk purchased 50,000 shares (25% of total) of Kildaire's common stock for 1,000,000 Oct. 23 Kildaire declared and paid a cash dividend of $3.70 per share Dec. 31 Kildaire's net income for 2017 is 1,214,000, and the fair value of its stock at December 31 is $30.50 per share 2018 Oct. 15 Kildaire declared and paid a cash dividend of $2.70 per share Dec. 31 Kildaire's net income for 2018 is ,526,000, and the fair value of its 3tock at December 31 i3 $32.50 per share 2019 Jan. 2 Selk sold all of its investment in Kildaire for $1,498,000 cash. Part 2 Assume that although Selk owns 25% 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. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. (lf 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 2017 2018 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
