On 2014 Alkhaleej Inc. purchased the Apple Inc. Common Stock (Considered Trading security) and General Electric Bonds (Considered Held to maturity) July 1, 2014 1) Acquiring 2,000 shares of Apple Inc. for $1,500,000 (less than 20% ownership) 2) Purchasing a General Electric $ 900,000, 12%, 5 year bond for while the market rate was 14%. The bond offers semiannual Interest payments. The price paid was 836,788. Dec 31, 2014 3) Alkhaleej Inc. received dividends of $10,000. 4) General Electric paid the semiannual payment of 54,000 to Alkhaleej Inc. 5) Alkhaleej Inc. prepared adjusting entry to reflect the change of Fair Value as follows: Extra Information The fair value of the GE bonds is $700,000 at Dec. 31, 2014 The fair value of the Apple. Inc. common stocks is $1,600,000 at Dec. 31. 2014 Requirement 1: Prepare the required journal entries for the events above rom 1-5 Requirement 2: Assuming this 2000 shares of Apple Inc. is a 25% of the Apple Inc. equity, record the tips: (Equity method) following events 1) Apple Inc. paid a total of $40,000 as a dividends 2) Apple earned a net profit of $400,000