On January 1, 2006, Pabst Company acquired 80% of Secor Company€™s common stock and 30% of Secor Company€™s 10% preferred stock. Pabst Company paid $680,000 for the common stock and $135,000 for the preferred stock. The preferred stock is cumulative and nonparticipating and has a call price of $104. On the date of acquisition, there were no dividends in arrears. On January 1, 2006, Secor Company reported the following account balances:
10% Preferred Stock ($100 par value)........... $ 400,000
Common Stock ($10 par value) ............ 500,000
Other Contributed Capital (Sale of common stock
in excess of par value) ............... 100,000
Retained Earnings.................. 230,000
Total....................... $1,230,000

Condensed preclosing trial balances for the two companies at December 31, 2011 are presentedbelow.

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Balance Sheet Current Assets Investment in Secor Company $1,618,000 680,000 $890,000 Common Stock Investment in Secor Company 135,000 Preferred Stock Other Assets 1,025,000 3,458,000 $ 931,000 400,000 1,000,000 600,000 527,000 3,458,000 1,000,000 Totals Liabilities Preferred Stock Common Stock Other Contributed Capital Retained Earnings 1.890,000 360,000 400,000 500,000 100,000 530,000 Totals 00 1,890,000