prepare 2 journal entries for year 1-3.

1: first one with the assumption that selk has a significant influence over kildaire with its 20% share of stock.

2: Then with selk still owning 20% of kildaire outstanding stock but without having significant influence.

Use the following information for the Problems below. (Algo) [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 40 , 000 shares (20\% of total) of Kildaire's common stock for $1,400,000. October 23 Kildaire declared and paid a cash dividend of \$3.80 per share. December 31 Kildaire's net income for the year is $1,170,000, and the fair value of its stock at December 31 is $42 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.70 per share. December 31 Kildaire's net income for the year is $1,181, e90, and the fair value of its stock at December 31 is $46 per share. Year 3 January 2 Selk sold 2% (equal to 800 shares) of its Investment in Kildaire for $67,400 cash