Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017

Jan.	5	Selk purchased 60,000 shares (25% of total) of Kildaire's common stock for $1,800,000.
Oct.	23	Kildaire declared and paid a cash dividend of $3.20 per share.
Dec.	31	Kildaire's net income for 2017 is $1,190,000, and the fair value of its stock at December 31 is $34.20 per share.

2018

Oct.	15	Kildaire declared and paid a cash dividend of $3.10 per share.
Dec.	31	Kildaire's net income for 2018 is $1,570,000, and the fair value of its stock at December 31 is $36.20 per share.

2019

Jan.

2

Selk sold all of its investment in Kildaire for $2,255,000 cash.

Assume that Selk has a significant influence over Kildaire with its 25% share of stock.

Part 1 Assume that Selk has a significant influence over Kildaire with its 25% share of stock.

Required: Prepare journal entries to record these transactions and events for Selk

Part 2 Assume that although Selk owns 25% of Kildaires outstanding stock, circumstances indicate that it does not have a significant influence over the investee and that it is classified as an available-for-sale security investment. Required: Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment.