E 12-15 Equity investments; fair value through net income LO12-5 year On March 31, 2024, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the 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 appropriate 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 entry Chow would use to record the sale.

E 12-15 Equity investments; fair value through net income On March 31, 2024, Chow Brothers, Inc, 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 appropriate 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 entry Chow would use to record the sale