On May 1,2023 , Peterson Corporation purchased 100,000 shares of Kraft, Inc., common stock for $3,000,000. The investment represents a 30% interest in the net assets of Kraft and gave Peterson the ability to exercise significant influence over Kraft's operations. On October 30, 2023, Peterson received dividends of $1.00 per share on the Kraft investment. Kraft reported net income of $700,000 for the year ended December 31, 2023. The market value of the Kraft stock was $40 per share on December 31, 2023. On May 1, 2023, the book value of Kraft's net assets was $12,000,000. The fair value of Kraft's depreciable assets, with an average remaining useful life of ten years, exceeded their book value by $1,000,000. Kraft depreciates its assets by the straight-line method. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. INSTRUCTIONS: a) Prepare all appropriate journal entries related to the investment during 2023, assuming Peterson accounts for this investment by the equity method. b) Prepare all appropriate journal entries related to the investment during 2023, assuming that the 100,000 shares of Kraft represent a 10% interest in the net assets of Kraft rather than a 30% interest. The 10% interest does not give Peterson the ability to exercise significant influence over Kraft's operations