Required information [The following information applies to the questions displayed below.] The accounting records of...
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Required information [The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: No changes occurred during 2024 in the investment portfolio. 3. Prepare appropriate adjusting entry(s) at December 31,2024 , assuming the fair value of the IBM common shares was $1,810,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 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 $31.6 million. Prepare the journal entries to record the sale
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Required information [The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: No changes occurred during 2024 in the investment portfolio. 3. Prepare appropriate adjusting entry(s) at December 31,2024 , assuming the fair value of the IBM common shares was $1,810,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 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 $31.6 million. Prepare the journal entries to record the sale 