Please answer the following financial accounting problem. After the pictures of the prompt, I have attached pictures of the options that are available to select from for each entry. The options are the same for all 3 entries in part two

On January 1, 2018, Sperrey Motors paid $380 million for a 40% investment in Phase Motors. Phase earned net income of $50 million and declared and paid cash dividends of $25 million during 2018. Read the requirements 1. What method should Sperrey Motors use to account for the investment in Phase? Give your reason. is appropriate because Sperrey Motors holds a 40% investment in Phase and, therefore, may have V over Phase 2. Journalize these three transactions on the books of Sperrey Motors. Show all amounts in millions of dollars (rounded to the closest million), and include an explanation for each entry. (Enter amounts in millions as provided to you in the problem statement. Round answers to the closest million. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the purchase of the investment in Phase. Journal Entry Accounts and Explanations Date Credit Jan Next, record the net income earned