Sandhill Corporation purchased for $333,000 a 32% interest in Murphy, Inc. This investment enables Sandhill to exert significant influence over Murphy. During the year, Murphy earned net income of $605,000 and paid dividends of $180,000. Prepare Sandhills journal entries related to this investment:

1. Purchase of investment
2. Sandhills portion of income
3. Sandhills portion of dividends