Ahmed Corporation purchased 75 percent of Gander Company's common shares and 40 percent of its preferred shares on January 1, Year 6, for $540,000 and $160,000, respectively. At the time of purchase, the fair value of Gander's common and preferred shares was equal to their carrying value. Gander's balance sheet contained the following balances: Preferred Shares ($10 par value) Common Shares Retained Earnings Total Shareholders' Equity +A 400,000 300,000 420,000 $ 1,120,000 For the year ended December 31, Year 6, Gander reported net income of $140,000 and paid dividends of $52,000 (which includes the preferred dividend). The preferred shares are cumulative and pay an annual dividend of 4 percent. There were no dividends in arrears at the date of acquisition. Ahmed uses the cost method to account for its interest in the preferred shares of Gander and the equity method to account for its interest in the common shares of Gander. Required: (a) Prepare the journal entries recorded by Ahmed for its investments in Gander during Year 6. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)