Check my work mode: This shows what is correct or incorrect for the work you On March 31, 2021, Chow Brothers, Inc., bought 6% of KT Manufacturing's capital stock for $54.2 million. KT's net income for the year ended December 31, 2021, was $81.4 million. The fair value of the shares held by Chow was $378 million at December 31, 2021 KI did not declare or pay a dividend during 2021 Required: 1. Prepare all appropriate journal entries related to the investment during 2021 2. Assume that Chow sold the stock on January 20, 2022, for $31.4 million. Prepare the journal entries to record the sale. Answer is not complete. 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 2021. (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 (.e. 5.500,000 should be entered as 5.5).). General Journal Credit Debit 542 March 31, 2021 Investment in equity securities Cash 54.2 2 16.4 December 31, 2021 Fair value adjustment Loss on investments (ND) December 31, 2021 Gain on investments (unrealized, N) Fair value adjustment Required Required 2 > SELN WORKOUE. THIS SNOW WHILI COPIGLOT incorrec TOT On March 31, 2021, Chow Brothers, Inc., bought 6% of KT Manufacturing's capital stock for $54.2 million. KT's net income for the year! ended December 31, 2021, was $81.4 million. The fair value of the shares held by Chow was $378 million at December 31, 2021 KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that Chow sold the stock on January 20, 2022, for $31.4 million. Prepare the journal entries to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that Chow sold the stock on January 20, 2022, for $31.4 million. Prepare the journal entries to record the sale. (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).). General Journal Debit Credit