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  3. on march 31, 2018, chow brothers, inc., bought 5%

On March 31, 2018, Chow Brothers, Inc., bought 5% of KT Manufacturing's capital stock for...

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Accounting

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On March 31, 2018, Chow Brothers, Inc., bought 5% of KT Manufacturing's capital stock for $55.7 million. KT's net income for the year ended December 31, 2018, was $81.9 million. The fair value of the shares held by Chow was $38.8 million at December 31, 2018. KT did not declare or pay a dividend during 2018 Required: 1. Prepare all appropriate journal entries related to the investment during 2018 2. Assume that Chow sold the stock on January 20, 2019 for $31.9 million. Prepare the journal entries to record the sale

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