Reden Corporation purchased 30 percent of Montgomery Companys common stock on January 1, 20X9, at underlying book value of $193,500. Montgomerys balance sheet contained the following stockholders equity balances:

Preferred Stock ($4 par value, 42,000 shares issued and outstanding)	$ 168,000
Common Stock ($1 par value, 135,000 shares issued and outstanding)	135,000
Additional Paid-In Capital	185,000
Retained Earnings	325,000
Total Stockholders Equity	$ 813,000

Montgomerys preferred stock is cumulative and pays a 10 percent annual dividend. Montgomery reported net income of $102,000 for 20X9 and paid total dividends of $46,000.

Required:

Give the journal entries recorded by Reden Corporation for 20X9 related to its investment in Montgomery Company common stock.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.