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 (20% of total) of Kildaire's common stock for $1,350,000.
Oct .	23	Kildaire declared and paid a cash dividend of $4.00 per share.
Dec.	31	Kildaire's net income for 2013 is $1,244,000, and the fair value of its stock at December 31 is $30.80 per share.

2014

Oct.	15	Kildaire declared and paid a cash dividend of $2.90 per share.
Dec.	31	Kildaire's net income for 2014 is $1,556,000, and the fair value of its stock at December 31 is $32.80 per share.

2015

Jan.

2

Selk sold all of its investment in Kildaire for $1,820,000 cash.

Part 1

Assume that Selk has a significant influence over Kildaire with its 20% share of stock.

Required:

1.

Prepare journal entries to record these transactions and events for Selk. (If no entry is required for a particular transaction, select "No journal entry required" in the first

account field.) 2

Compute the carrying (book) value per share of Selks investment in Kildaire common stock as reflected in the investment account on January 1, 2015.

(Round your answer to 1 decimal place.)

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