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Use the following information for the Problems below. $($Algo$)$

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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 $$1,650,000.$

October $23$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}40$ per share.

December $31$ Kildaire's net income for the year is $$1,126,000,$ and the fair value of its stock at December $31$ is $$46$ per share.

Year $2$

October $15$ Kildaire declared and paid a cash dividend of $$3\mathrm{.}30$ per share.

December $31$ Kildaire's net income for the year is $$1,185,000,$ and the fair value of its stock at December $31$ is $$48$ per share.

Year $3$

January $2$ Selk sold $4\%($equal to $1,600$ shares$)$ of its investment in Kildaire for $$80,000$ cash.

Problem C$-5$A $($Algo$)$ Accounting for long$-$term investments in stock with significant influence LO P$5$

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.

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Prepare journal entries to record these transactions and events for Selk.

Journal entry worksheet