On March 31, 2024, Chow Brothers, Incorporated, bought 5% of KT Manufacturing's capital stock for $56.0...

 

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On March 31, 2024, Chow Brothers, Incorporated, bought 5% of KT Manufacturing's capital stock for $56.0 million. KT's net income for the year ended December 31, 2024, was $82.0 million. The fair value of the shares held by Chow was $39.0 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 $32.0 million. Prepare the journal entries to record the sale. On March 31, 2024, Chow Brothers, Incorporated, bought 5% of KT Manufacturing's capital stock for $56.0 million. KT's net income for the year ended December 31, 2024, was $82.0 million. The fair value of the shares held by Chow was $39.0 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 $32.0 million. Prepare the journal entries to record the sale.

Answer rating: 100% (QA)

1 Journal Entries for 2024 a Purchase of 5 of KT Manufacturings capital stock on March 31 2024 Debit ... View the full answer