On March 31, 2024, Chow Brothers, Incorporated, bought 10% of KT Manufacturing's capital stock for $50...

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On March 31, 2024, Chow Brothers, Incorporated, bought 10% of KT Manufacturing's capital stock for $50 million, KT's net income for the year ended December 31, 2024, was $80 million. The fair value of the shares held by Chow was $35 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 $30 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 2 3 Record the purchase of KT Manufacturing's capital stock for $50 million. Date March 31, 2024 Note: Enter debits before credits. General Journal Debit Credit > View transaction list Journal entry worksheet 1 3,000 should be entered as 10). Date December 31, 2024 2 Record the entry for KT's net income. Record entry 3 Note: Enter debits before credits. General Journal Clear entry entry required" in the first at Debit Credit View general journal > Journal entry worksheet < 1 2 Record the fair value adjustment. Date December 31, 2024 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet < 1 Record the entry to adjust the fair value. 2 Note: Enter debits before credits. Date January 20, 2025 Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet < 1 2 Record the sale of stock on January 20, 2025 for $30 million. Note: Enter debits before credits. Date January 20, 2025 Record entry General Journal Clear entry Debit Credit View general journal On March 31, 2024, Chow Brothers, Incorporated, bought 10% of KT Manufacturing's capital stock for $50 million, KT's net income for the year ended December 31, 2024, was $80 million. The fair value of the shares held by Chow was $35 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 $30 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 2 3 Record the purchase of KT Manufacturing's capital stock for $50 million. Date March 31, 2024 Note: Enter debits before credits. General Journal Debit Credit > View transaction list Journal entry worksheet 1 3,000 should be entered as 10). Date December 31, 2024 2 Record the entry for KT's net income. Record entry 3 Note: Enter debits before credits. General Journal Clear entry entry required" in the first at Debit Credit View general journal > Journal entry worksheet < 1 2 Record the fair value adjustment. Date December 31, 2024 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet < 1 Record the entry to adjust the fair value. 2 Note: Enter debits before credits. Date January 20, 2025 Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet < 1 2 Record the sale of stock on January 20, 2025 for $30 million. Note: Enter debits before credits. Date January 20, 2025 Record entry General Journal Clear entry Debit Credit View general journal