On March 31, 2021, Chow Brothers, Inc., bought 7% of KT Manufacturing's capital stock for $53.6 million. KT's net income for the year ended December 31, 2021, was $81.2 million. The fair value of the shares held by Chow was $37.4 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 $31.2 million. Prepare the journal entries to record the sale. 2 3 Record the purchase of KT Manufacturing's capital stock for $53.6 million. Note: Enter debits before credits. General Journal Debit Credit March 31, 2021 Record entry Clear entry View general journal 1 2 Record the entry to adjust the fair value. Note: Enter debits before credits. Date General Journal Debit Credit January 20 2022