Selk Steel Co., which began operations in Year 1, had the following transactions and events in its long-term investments.

Year 1

Jan.5 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000.

Oct. 23 Kildare declared and paid a cash dividend of $3.20 per share.

Dec. 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share.

Year 2

Oct. 15 Kildare declared and paid a cash dividend of $2.60 per share.

Dec.31 Kildaire's net income for the year is $1,476.000. and the fair value of its stock at December 31 is $32.00 per share.

Year 3

Jan. 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildare for $54.200 cash.

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.

Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant influence over the investee.

Prepare journal entries to record the preceding transactions and events for Selk.