ch12 3

On March 31, 2024, Chow Brothers, Incorporated, bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the year ended December 31, 2024, was $80 million. The fair value of the shares held by Chow was $35 million at December 31.2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all oppropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20. 2025, for $30 million. Prepare the journal entries to record the sale