Reden Corporation purchased 45 percent of Montgomery Company's common stock on January 1, 20X9, at underlying book value of $289,800. Montgomery's balance sheet contained the following stockholders' equity balances: Preferred Stock ($4 par value, 40,000 shares issued and outstanding) Common Stock ($1 par value, 138,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Montgomery's preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of $96,000 for 20X9 and paid total dividends of $45,000. 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. View transaction list Journal entry worksheet < A B Record the purchase of Montgomery Company stock. Event Note: Enter debits before credits. General Journal Debit < Prev ANDRIA Credit $ 160,000 138,000 187,000 319,000 $ 804,000 3 of 4 > Next >