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On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $53.0 million. KT's net income for the year ended December
On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $53.0 million. KT's net income for the year ended December 31,2024 , was $81.0 million. The fair value of the shares held by Chow was $37.0 million at December 31 , 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024 2. Assume that Chow sold the stock on January 20,2025 , for $31.0 million. Prepare the journal entries to record the sale. On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $53.0 million. KT's net income for the year ended December 31,2024 , was $81.0 million. The fair value of the shares held by Chow was $37.0 million at December 31 , 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024 2. Assume that Chow sold the stock on January 20,2025 , for $31.0 million. Prepare the journal entries to record the sale
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
