On March 31, 2018, Chow Brothers, Inc., bought 6% of KT Manufacturings capital stock for...
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On March 31, 2018, Chow Brothers, Inc., bought 6% of KT Manufacturings capital stock for $53.0 million. KTs net income for the year ended December 31, 2018, was $81.0 million. The fair value of the shares held by Chow was $37.0 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 $31.0 million. Prepare the journal entries to record the sale.
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