$!$

Required information

Use the following information for the Problems below. $($Algo$)$

$[$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 $40,000$ shares $(20\%$ of total$)$ of Kildaire's common stock for $$1,520,000.$

October $23$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}30$ per share.

December $31$ Kildaire's net income for the year is $$1,195,000,$ and the fair value of its stock at December $31$ is $$43$ per share.

Year $2$

October $15$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}00$ per share.

December $31$ Kildaire's net income for the year is $$1,112,000,$ and the fair value of its stock at December $31$ is $$47$ per share.

Year $3$

January $2$ Selk sold $3\%($equal to $1,200$ shares$)$ of its investment in Kildaire for $$67,100$ cash.

Problem C$-5$A $($Algo$)$ Accounting for long$-$term investments in stock with significant influence LO P$5$

Required:

Prepare journal entries to record these transactions and events for Selk. Assume that Selk has a significant influence over Kildaire with its $20\%$ share of stock.