On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturings capital stock for $53.3 million. KTs net income for the year ended December 31, 2018, was $81.1 million. The fair value of the shares held by Chow was $37.2 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. Record the purchase of KT capital stock for 53.3 million, Record the entry for KTs net income, Record the fair value adjustment

2. Assume that Chow sold the stock on January 20, 2019 for $31.1 million. Prepare the journal entries to record the sale : Record the entry to adjust the fair value, Record the sale of stock on jan 20, 2019 for 31.1 million