On March 31, 2021, Chow Brothers, Inc., bought 5% of KT Manufacturings capital stock for $54.5 million. KTs net income for the year ended December 31, 2021, was $81.5 million. The fair value of the shares held by Chow was $38.0 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 $31.5 million. Prepare the journal entries to record the sale.

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 (i.e., 5,500,000 should be entered as 5.5).). View transaction list Journal entry worksheet Record the purchase of KT Manufacturing's capital stock for $54.5 million. Note: Enter debits before credits. Date General Journal Debit Credit March 31, 2021 Journal entry worksheet Record the fair value adjustment. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 View transaction list Journal entry worksheet 1 2 > Record the entry to adjust the fair value. Note: Enter debits before credits. General Journal Debit Credit Date January 20, 2022 Journal entry worksheet Record the sale of stock on January 20, 2022 for $31.5 million. Note: Enter debits before credits. General Journal Debit Credit Date January 20, 2022