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 40,000 shares (20% of total) of Kildaire's common stock for $1,600,000.
Oct.		23		Kildaire declared and paid a cash dividend of $2.40 per share.
Dec.		31		Kildaires net income for the year is $1,126,000 and the fair value of its stock at December 31 is $46 per share.

Year 2

Oct.		15		Kildaire declared and paid a cash dividend of $3.30 per share.
Dec.		31		Kildaires net income for the year is $1,185,000 and the fair value of its stock at December 31 is $48 per share.

Year 3

Jan.

2

Selk sold 4% (equal to 1,600 shares) of its investment in Kildaire for $80,000 cash.

Assume that although Selk owns 20% of Kildaires outstanding stock, circumstances indicate that it does not have a significant influence over the investee. Required: 1. Prepare journal entries to record the preceding transactions and events for Selk