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(The following information applies to the questions displayed below.) Selk Steel Company, which began operations in Year 1, had the following transactions and events in
(The following information applies to the questions displayed below.) 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 55,800 shares (20% of total) of Kildaire's common stock for $1,485,000. October 23 Kildaire declared and paid a cash dividend of $2.70 per share. December 31 Kildaire's net income for the year is $1,127,000, and the fair value of its stock at December 31 is $33 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.40 per share. December 31 Kildaire's net income for the year is $1,151,000, and the fair value of its stock at December 31 is $35 per share. Year 3 January 2 Selk sold 58 (equal to 2,750 shares) of its investment in Kildaire for $84,700 cash. Required: Prepare Journal entries to record these transactions and events for Selk. Assume that Selk has a significant influence over Kildaire with its 20% share of stock. Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Prepare journal entries to record these transactions and events for Selk. View transaction list Journal entry worksheet 1 2 3
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