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 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 ne ncome for 2013 is 64.000, and the fa alue of its stock at December 31 is $30.00 per share 2014 Oct. 15 Kildaire declared and paid a cash dividend of$2.60 per share De c.31 Kildaire's ne ncome for 2014 is $1,476,000, and the fa alue of its stock at December 31 is $32.00 per share 2015 Jan. 2 Selk sold all of its investment in Kildaire for $1.894.000 cash Part 1 Assume that Selk has a significant influence over Kildaire with its 20% share of stock Required: Prepare journal entries to record these transactions and events for Selk. (lf no entry is required fo a particular transaction, sele "No journal entry required" in the eld st accoun General Journal Debit Credit Date 1,560,000 Jan 05, 2013 Long-term investments-Kildaire 1,560,000 Cash Oct 23, 2013 Cash 192.000 192,000 Long-term investments-Kildaire v Dec 31, 2013 Long-term investments-Kildaire 69.000 69,000 Interest revenue Oct 15, 2014 Cash Long-term investments-Kildaire Dec 31, 2014 Cash Long-term investments-Kildaire Gain on sale of investment Compute the carrying (book) value per share of Selk's investmen n Kildaire common stock as reflected in the investment account on January 1, 2015. (Round your answe to 1 decimal place Carry ng value per share 3. Compute the ne ncrease or decrease in Selk's equity from January 5, 2013, through January 2 2015, resulting from its investment in Kildaire The n Selks equity is Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significan nfluence over the investee and tha s classified as an available-for-sale security investment. Part 2 Required: 1. Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2015, to remove any balance related to the fa alue adjustment. (If no entry s required for a particular transaction, select No journal entry required" in the first a eld view transaction list View general journal Date General Journa Debit Credit Jan 05.2013 No Transaction Recorded Oct 23. 2013 No Transaction Recorded Dec 31, 2013 No Transaction Recorded Oct 15, 2014 No Transaction Recorded Compute the cost pe share of Selk's investmen n Kildaire common stock as reflected in the investment account on January 1, 2015 nvestment cost per share 3. Compute the ne ncrease or decrease in Selk's equity from January 5, 2013, through January 2 2015, resulting from its investment in Kildaire The n Selk's equity is
