On March 31, 2024, Chow Brothers, Incorporated, bought 8% of KT Manufacturings capital stock for $52.4 million. KTs net income for the year ended December 31, 2024, was $80.8 million. The fair value of the shares held by Chow was $36.6 million at December 31, 2024. KT did not declare or pay a dividend during 2024.

Required:

Prepare all appropriate journal entries related to the investment during 2024.

Assume that Chow sold the stock on January 20, 2025, for $30.8 million. Prepare the journal entries to record the sale.