Suppose that on January 6, 2018, Southeast Motors paid $330,000,000 for its 25% investment in Phase Motors. Southeast has significant influence over Phase after the purchase. Assume Phase earned net income of $25,000,000 and paid cash dividends of $20,000,000 to all outstanding stockholders during 2018. (Assume all outstanding stock is voting stock.) Read the requirements. Requirement 1. What method should Southeast Motors use to account for the investment in Phase Motors? Give your reasoning. Southeast Motors should use the method to account for its investment in Phase Motors because the investment Requirement 2. Journalize all required 2018 transactions related to Southeast Motors's Phase investment. Include an explanation for each entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) i Southeast Motors paid $330,000,000 for its 25% investment in Phase Motors. Requirements Date Accounts and Explanation Debit Credit 2018 Jan. 6 1. What method should Southeast Motors use to account for the investment in Phase Motors? Give your reasoning. 2. Journalize all required 2018 transactions related to Southeast Motors's Phase investment. Include an explanation for each entry. 3. Post all 2018 transactions to the investment T-account. What is its balance after all the transactions are posted? How would this balance be classified on the balance sheet dated December 31, 2018? Phase paid cash dividends of $20,000,000 to all outstanding shareholders during 2018. Date Accounts and Explanation Debit Credit 2018 Phase earned net income of $25,000,000 during 2018. Date Accounts and Explanation Debit Credit 2018 Requirement 3. Post all 2018 transactions to the investment T-account. What is its balance after all the transactions are posted? How would this balance be classified on the balance sheet dated December 31, 2018? Begin by selecting the investment account and posting the 2018 transactions to the investment T-account. Calculate the balance after all the transactions are posted. How would this balance be classified on the balance sheet dated December 31, 2018? This balance would be classified as accumulated other comprehensive income on the balance sheet dated December 31, 2018