HESIVILE marks) Empire Investment Company engaged in several investments in 2019: Its financial year-end is December 31. On 1 January, it acquired 30% of the outstanding ordinary shares of Sweetie Limited for $880,000 cash. At the date of purchase, the book value of Sweetie's net assets was $2,500,000. The book values and fair values for all items were the same except the plant and goodwill. The fair value exceeds the book value by $150,000 for the plant. The estimated useful life of the plant is 5 years. The equity method is deemed appropriate to account for this investment. On 1 March, Empire acquired bonds from Swire Limited at $878,333 and intends and has the ability to hold it until its maturity (the mature date of the bonds is 1 March 2024). The bond has a face value of $1,000,000 and stated interest rate at 5%. Interest is payable semi-annually with its first interest payment due on 1 September 2019. The market rate of return of the similar bonds is 8% at the date of purchase. Empire adopts the effective interest method to account for the amortization of bonds discounts or premiums, if any. On 1 May, Empire purchased 5,000 shares of Smart Limited at $12 each with brokerage fee of $1,500. It sold out half of Smart's shares at $20 each and exchange for 3,000 Swing's shares on 31 August. Both investments are acquired to benefit from making profit arising from the short-term price changes. On 31 December 2019, Sweetie Limited paid cash dividends of $20,000 and reported net income of $450,000. On the same day, Smart Limited declared and paid cash dividends $2 for each share. The market price or fair value of the investments at the financial year-end are shown as below: Smart Limited- shares: $15 per share Swing Limited- shares: $18 per share Sweetie Limited-shares: $1,000,000 Swire Limited - bond: $900,000 Required: Prepare all relevant journal entries to record the above investments for the year 2019