Please do not answer the anonymous who answered 293 question.

1) Selk purchased 40,000 shares (20% of total) of Kildaire's common stock for $1,200,000.

2) Kildaire declared and paid a cash dividend of $4.20 per share.

3) Kildaire's net income for 2015 is $1,264,000, and the fair value of its stock at December 31 is $31.00 per share.

4) Kildaire declared and paid a cash dividend of $3.10 per share.

5) Kildaire's net income for 2016 is $1,576,000, and the fair value of its stock at December 31 is $33.00 per share.

6) Selk sold all of its investment in Kildaire for $1,665,000 cash.

7) Remove any balance related to the fair value adjustment.

These accounts can be used:

No Journal entry required

Accounts receivable

Cash

Dividend revenue

Earming from long-term investment

Fair value adjustment-AFS (LT)

Fair value adjustment - Available for sale (ST)

Fair value adjustment - Trading

Foreign exchange gain

Foreign exchange loss

Gain on sale of Investment

Interest receivable

Interes revenue

Long term investments - AFS (Kildaire)

Loss on sale of investment

Sales

Shor term investments - AFS (Kildaire)

Unrealized gain - Equity

Unrealized gain - Income

Unrealized loss - Equity

Unrealized loss - Income

Part 2 Assume that although Selk owns 20% of Kildare's 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: 1. Prepar re journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2017, to remove any balance related to the fair value adjustment. (If no entry is required select No journal entry required in the first e ntry field)