On January 1, 2018, Colfax Corporation purchased 25% of the outstanding voting shares of Yakima Supplies common stock for $210,000 cash. On that date, Yakima's book value and fair value were both $840,000. The equity method is deemed appropriate for this investment because Colfax exercises significant influence over Yakima. Yakima's net income reported on December 31, 2018, was $80,000. During 2018, Yakima also paid cash dividends in the amount of $24,000.

Required:

Prepare the journal entries necessary to record the above information on Colfax Corporation's books during 2018, including explanations that include calculations.