3)- on january 1, 2011 we purchased 25% of the common stock of another company for $200,000. during the year, the other company earning net income of $80,000 and paid dividends of $40,000. prepare the journal entries to record the purchase and any additional entries related to his investment in 2011. use the equity method. 4)- a company entered into a two year contract for $3,850,000, and projected the cost of this project to be $2 million. at the end of the first year the company incurred cost to be $1,800,000 related to the project, and estimated the remaining cost to be $1,300,000. the company has billed and collected $1,500,000 under the project. the company uses the percentage of completion method. a-what is the percentage complete? b- what is the gross profit to be recognized? c-prepare the journal entries? d- what would be the difference if the company used the completed contact?

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