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Reden Corporation purchased 30 percent of Montgomery Company's common stock on January 1, 20X9, at underlying book value of $198,900. Montgomery's balance sheet contained the following stockholders' equity balances: Preferred Stock ($4 par value, 44,000 shares issued and outstanding) Common Stock ($1 par value, 150,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings $176,000 150,000 186,000 327,000 $839,000 Total Stockholders' Equity Montgomery's preferred stock is cumulative and pays a 10 percent annual dividend. Montgomery reported net income of $95,000 for 20X9 and paid total dividends of $49,000 Required: Give the journal entries recorded by Reden Corporation for 20X9 related to its investment in Montgomery Company common stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of Montgomery Company stock