Reden Corporation purchased 30 percent of Montgomery Companys common stock on January 1, 20X9, at underlying book value of $195,600. Montgomerys balance sheet contained the following stockholders equity balances:

Preferred Stock $4 par value, 42,000 shares issued and outstanding) Common Stock ($1 par value, 134,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity $ 168,000 134,000 196,000 322,000 $820,000 Montgomery's preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of $104,000 for 20x9 and paid total dividends of $40,000. 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