7. On March 31, 2024, Chow Brothers, Incorporated, bought 5% of KT Manufacturing's capital stock for $55.1 million. KT's net income for the year ended December 31, 2024, was $81.7 million. The fair value of the shares held by Chow was $38.4 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.7 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.7 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet 1 2 3 Record the purchase of KT Manufacturing's capital stock for $55.1 million. Note: Enter debits before credits. Date March 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.7 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that Chow sold the stock on January 20, 2025, for $31.7 million. Prepare the journal entries to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 2 Record the entry to adjust the fair value. Note: Enter debits before credits Date January 20, 2025 General Journal Debit Credit Record entry Clear entry View general journal