Exercise $12-15($Algo$)$ Equity investments; fair value through net income $[$LO$12-5]$

On March $31,2024,$ Chow Brothers, Incorporated, bought $8\%$ of KT Manufacturing$$s capital stock for $$52\mathrm{.}4$ million. KT$$s net income for the year ended December $31,2024,$ was $$80\mathrm{.}8$ million. The fair value of the shares held by Chow was $$36\mathrm{.}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\mathrm{.}8$ million. Prepare the journal entries to record the sale.