Required information

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Selk Steel Co., which began operations on January 4, 2013, had the following subsequent transactions and events in its long-term investments.

2013

Jan.	5	Selk purchased 50,000 shares (25% of total) of Kildaire's common stock for $1,200,000.
Oct .	23	Kildaire declared and paid a cash dividend of $4.40 per share.
Dec.	31	Kildaire's net income for 2013 is $1,284,000, and the fair value of its stock at December 31 is $31.20 per share.

2014

Oct.	15	Kildaire declared and paid a cash dividend of $3.30 per share.
Dec.	31	Kildaire's net income for 2014 is $1,596,000, and the fair value of its stock at December 31 is $33.20 per share.

2015
Jan.	2	Selk sold all of its investment in Kildaire for $1,642,000 cash.

Part 2

Assume that although Selk owns 25% of Kildaires 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, 2015, to remove any balance related to the fair value adjustment. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

2.	Compute the cost per share of Selks investment in Kildaire common stock as reflected in the investment account on January 1, 2015.

3.	Compute the net increase or decrease in Selks equity from January 5, 2013, through January 2, 2015, resulting from its investment in Kildaire.