On March $31,2021,$ Chow Brothers, Inc., bought $5\%$ of KT Manufacturing$$s capital stock for $$55\mathrm{.}7$ million. KT$$s net income for the year ended December $31,2021,$ was $$81\mathrm{.}9$ million. The fair value of the shares held by Chow was $$38\mathrm{.}8$ million at December $31,2021.$ KT did not declare or pay a dividend during $2021.$ Required: $1.$ Prepare all appropriate journal entries related to the investment during $2021.2.$ Assume that Chow sold the stock on January $20,2022,$ for $$31\mathrm{.}9$ million. Prepare the journal entries to record the sale.

$1)$Record the purchase of KT Manufacturing$$s capital stock for $$55\mathrm{.}7$ million. $($investment in stock $55\mathrm{.}7,$ credit cash $55\mathrm{.}7$

$2)$Record the entry for KT$\text{'}$s net income.

$3)$Record the fair value adjustment. $($I got $16\mathrm{.}9)$

Requirement $2$

$2.$Assume that Chow sold the stock on January $20,2022,$ for $$31\mathrm{.}9$ million. Prepare the journal entries to record the sale.

Record the entry to adjust the fair value.

Record the sale of stock on January $20,2022$ for $$31\mathrm{.}9$ million.