EXERCISE 9-9 Various Preferred Stock Characteristics-Workpaper Entries LO7 Sam's Company reported the following stockholders' equity account balances on December 31, 2014. Preferred stock (12%, $100 par value, call price is $105) Common stock, $10 par value Other contributed capital--premium on issue of common stock Retained earnings Total $100,000 500,000 160,000 110,000 $870,000 On December 31, 2014, Peterson, Inc. acquired 60% of Sam Company's common stock for $550,000 and 40% of its preferred stock for $55,000. The difference between the implied value of the common stock (preferred stock) and the book value is allocated entirely to land (other contributed capital and noncontrolling interest). Required: Prepare in general journal form the December 31, 2014, workpaper entries to eliminate the investment in common and preferred stock for each of the following independent cases: Case 1: The preferred stock is noncumulative and nonparticipating. Case 2: The preferred stock is cumulative and nonparticipating, and dividends were not paid in 2013 and 2014. Case 3: The preferred stock is noncumulative and fully participating.