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Preheat oven to 350 degrees.
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Cream margarine and sugar together.
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Beat in one egg at a time.
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Add vanilla.
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Sift together dry ingredients and add to sugar mixture, alternating with the water.
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Stir in sauerkraut.
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Pour into greased and floured 13"x9" cake pan.
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Bake 35 to 40 minutes.
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Frost with Sour Cream Chocolate Frosting.