On March 31, 2024, Chow Brothers, Incorporated, bought 8% of KT Manufacturing's capital stock for $52.4 million. KT's net income for the year ended December 31, 2024, was $80.8 million. The fair value of the shares held by Chow was $36.6 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 $30.8 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 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 5.5). Required 2

On March 31, 2024, Chow Brothers, Incorporated, bought 8% of KT Manufacturing's capital stock for $52.4 million. KT's net income for the year ended December 31, 2024, was $80.8 million. The fair value of the shares held by Chow was $36.6 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 $30.8 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 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 5.5). Required 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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