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On March 31, 2021, Chow Brothers, Inc., bought 6% of KT Manufacturings capital stock for $54.2 million. KTs net income for the year ended December

On March 31, 2021, Chow Brothers, Inc., bought 6% of KT Manufacturings capital stock for $54.2 million. KTs net income for the year ended December 31, 2021, was $81.4 million. The fair value of the shares held by Chow was $37.8 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 $31.4 million. Prepare the journal entries to record the sale.

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