On March $31,2024,$ Chow Brothers, Incorporated, bought $6\%$ of KT Manufacturing's capital stock for $$54\mathrm{.}8$ million. KT$\text{'}$s net income for the year ended December $31,2024,$ was $$81\mathrm{.}6$ million. The fair value of the shares held by Chow was $$38\mathrm{.}2$ 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 $$31\mathrm{.}6$ million. Prepare the journal entries to record the sale.

Complete this question by entering your answers in the tabs below.

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field, Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

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

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$December $31,],[2024]],$Gain on investments $($NI$),,],[,$Fair value adjustment,,$],[,,,],[,,,],[,,,]]$