Question
Selk Steel Co., which began operations on January 4, 2015, had the following subsequent transactions and events in its long-term investments. 2015 Jan. 5 Selk
Selk Steel Co., which began operations on January 4, 2015, had the following subsequent transactions and events in its long-term investments. |
2015 |
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 2015 is $1,244,000, and the fair value of its stock at December 31 is $30.80 per share. |
2016 |
Oct. | 15 | Kildaire declared and paid a cash dividend of $2.90 per share. |
Dec. | 31 | Kildaire's net income for 2016 is $1,556,000, and the fair value of its stock at December 31 is $32.80 per share. |
2017 | ||
Jan. | 2 | Selk sold all of its investment in Kildaire for $1,820,000 cash. |
2.
value: 5.00 points
Required information
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 select No journal entry required in the first entry field. )
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