On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $51.5...

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On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $51.5 million. KT's net income for the year ended December 31, 2021, was $80.5 million. The fair value of the shares held by Chow was $36.0 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 $30.5 million. Prepare the journal entries to record the sale. On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $51.5 million. KT's net income for the year ended December 31, 2021, was $80.5 million. The fair value of the shares held by Chow was $36.0 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 $30.5 million. Prepare the journal entries to record the sale.