Selk Steel Company, which began operations in Year $1,$ had the following transactions and events in its long$-$term investments.

Year $1$

January $5$ Selk purchased $60,000$ shares $(20\%$ of total$)$ of Kildaire's common stock for $$1,560,000.$

October $23$ Kildaire declared and paid a cash dividend of $$3\mathrm{.}20$ per share.

December $31$ Kildaire's net income for the year is $$1,164,000,$ and the fair value of its stock at December $31$ is $$30\mathrm{.}00$ per share.

Year $2$

October $15$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}60$ per share.

December $31$ Kildaire's net income for the year is $$1,476,000,$ and the fair value of its stock at December $31$ is $$32\mathrm{.}00$ per share.

Year $3$

January $2$ Selk sold $3\%($equal to $1,800$ shares$)$ of its investment in Kildaire for $$54,200$ cash.

Assume that although Selk owns $20\%$ of Kildaire's outstanding stock, circumstances indicate that it does not have a significant influence over the investee.

Required:

Prepare journal entries to record the preceding transactions and events for Selk.

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record the preceding transactions and events for Selk.

$\backslash$table$[[$No$,$Date,Gener:,,Debit,Credit$],[1,$January $05,$Common stock, $$10$ par value,$x,1,400,000,],[,$Cash,,,$1,400,000$