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

Required: Prepare journal entries to record these transactions and events using the Fair Value Method for Selk. Assume that Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant influence over the investee.

Year 1 Jan. 5 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. Oct. 23 Kildaire 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 Kildaire 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 Kildaire for $54,200 cash