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Pop AG purchased 750 shares of outstanding preferred stock of its 90 percent affiliates, Ron AG on January 1, 2014 at $100 per share.
Pop AG purchased 750 shares of outstanding preferred stock of its 90 percent affiliates, Ron AG on January 1, 2014 at $100 per share. The stockholders' equity at the time is as follow: Common stockholders' equity Preferred stockholders' equity $415,000 $114,000 (1,000 shares, 104 call price per share, $10 per share dividend arrearage) Additional Information: Ron reported net income of $50,000 passes dividend during 2014. Required: Prepare all entries needed for Pop AG to account all the transactions above.
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