On January 1, 2021, Eastern Motors paid $470 million for a 45% investment in Phase Motors. Phase earned net income of $80 million and declared and paid cash dividends of $40 million during 2021. Read the requirementsLOADING 1. What method should Eastern Motors use to account for the investment in Phase? Give your reason. ▼ Consolidation method Equity method Fair value method is appropriate because Eastern Motors holds a 45% investment in Phase and, therefore, may have ▼ almost no influence control significant influence over Phase. 2. Journalize these three transactions on the books of Eastern 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 Date Accounts and Explanations Debit Credit Jan 1 Next, record the net income earned. Journal Entry Date Accounts and Explanations Debit Credit 2021 Now record the cash dividends received. Journal Entry Date Accounts and Explanations Debit Credit 2021 3. Post to the Equity-Method Investment T-account. What is its balance after all the transactions are posted? (Enter amounts in millions as provided to you in the problem statement.) Equity-Method Investment