6. (10 points) Collinsworth Inc. purchased the following equity securities on January 1, 2018 and held in its portfolio on Dec. 31, 2018:

a. Ownership less than 5% - IBM10,000 shares, cost $140 per share, market value $145 per share - Apple ..10,000 shares, cost $100 per share, market value $125 per share - Caterpillar.10,000 shares, cost $100 per share, market value $90 per share

b. Ownership 25% of St. John Inc., cost $1,500,000. During 2019, St. Johns net income was $1,000,000 and the company paid $200,000 in dividends, in total. The market value was $1,600,000 on December 31, 2015.

During 2019, Apple stock was sold for $290 per share and the market value of IBM was $160 and Caterpillar was $145. St. Johns net income was $900,000 and St. Johns paid $450,000 in dividends, in total.

Prepare the required journal entries for 2018 and 2019 to adjust the balance sheet to properly reflect the appropriate valuation and record all of the transactions, including the acquisition on January 1. Collinsworth, Inc. has not elected the fair value option for its investment in St. Johns.