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  3. on march 31, 2018, chow brothers, inc., bought 8%

On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for...

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Accounting

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On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $52.4 million. KT's net income for the year ended December 31, 2018, was $80.8 million. The fair value of the shares held by Chow was $36.6 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 $30.8 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 2018. (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).) View transaction list Journal entry worksheet 2 Record the purchase of KT Manufacturing's capital stock for $52.4 million Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal

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