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 40,000 shares (20% of total) of Kildaire's common stock for $1,200,000.
Oct .	23	Kildaire declared and paid a cash dividend of $4.20 per share.
Dec.	31	Kildaire's net income for 2013 is $1,264,000, and the fair value of its stock at December 31 is $31.00 per share.

2014

Oct.	15	Kildaire declared and paid a cash dividend of $3.10 per share.
Dec.	31	Kildaire's net income for 2014 is $1,576,000, and the fair value of its stock at December 31 is $33.00 per share.

2015
Jan.	2	Selk sold all of its investment in Kildaire for $1,665,000 cash.

Problem 15-5A Part 1

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.) Selk purchased 40,000 shares (20% of total) of Kildaire's common stock for $1,200,000. Kildaire declared and paid a cash dividend of $4.20 per share. Kildaire's net income for 2013 is $1,264,000, and the fair value of its stock at December 31 is $31.00 per share. Kildaire declared and paid a cash dividend of $3.10 per share. Compute the carrying (book) value per share of Selks investment in Kildaire common stock as reflected in the investment account on January 1, 2015. Compute the net increase or decrease in Selks equity from January 5, 2013, through January 2, 2015, resulting from its investment in Kildaire. Selk purchased 40,000 shares (20% of total) of Kildaire's common stock for $1,200,000. Kildaire declared and paid a cash dividend of $4.20 per share. Kildaire's net income for 2013 is $1,264,000, and the fair value of its stock at December 31 is $31.00 per share. Kildaire declared and paid a cash dividend of $3.10 per share. Kildaire's net income for 2014 is $1,576,000, and the fair value of its stock at December 31 is $33.00 per share. Selk sold all of its investment in Kildaire for $1,665,000 cash. lk purchased 40,000 shares (20% of total) of Kildaire's common stock for $1,200,000. Kildaire declared and paid a cash dividend of $4.20 per share. Kildaire's net income for 2013 is $1,264,000, and the fair value of its stock at December 31 is $31.00 per share. Kildaire declared and paid a cash dividend of $3.10 per share. Kildaire's net income for 2014 is $1,576,000, and the fair value of its stock at December 31 is $33.00 per share