Osprey Company purchases 5,000 shares (25%) of Dove Company's outstanding common stock, paying $125,000 for the shares when Dove's book value is $390,000 and fair value is $520,000. The entry to record the purchase will include a

1. credit to Gain on Purchase of Investment for $5,000.
2. debit to Loss on Purchase of Investment for $27,500.
3. debit to Investment in Stock: Dove Company for $125,000.
4. credit to Investment in Stock: Dove Company for $97,500.