On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturings capital stock for $50 million. KTs net income for the year ended December 31, 2021, was $80 million. The fair value of the shares held by Chow was $35 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 $30 million. Prepare the journal entries to record the sale.

Required 1: 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 (i.e., 10,000,000 should be entered as 10).)

Required 2: Assume that Chow sold the stock on January 20, 2022, for $30 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 (i.e., 10,000,000 should be entered as 10).)

1) Record the entry to adjust the fair value.

2) Record the sale of stock on January 20, 2022 for $30 million.