On March 31, 2018, Chow Brothers, Inc., bought 6% of KT Manufacturings capital stock for $55.4 million. KTs net income for the year ended December 31, 2018, was $81.8 million. The fair value of the shares held by Chow was $38.6 million at December 31, 2018. KT did not declare or pay a dividend during 2018. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. (3) 2. Assume that Chow sold the stock on January 20, 2019 for $31.8 million. Prepare the journal entries to record the sale. (2)