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On July 1, TruData Company issues 9,800 shares of its common stock with a $5...

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Accounting

On July 1, TruData Company issues 9,800 shares of its common stock with a $5 par value and a $50 fair value in exchange for all of Webstat Companys outstanding voting shares. Webstats precombination book and fair values are shown below along with book values for TruDatas accounts.
TruData Webstat Webstat
Book Values Book Values Fair Values
Revenues (1/1 to 7/1) $ (324,000) $ (120,000)
Expenses (1/1 to 7/1)182,00094,000
Retained earnings, 1/1(116,000)(166,000)
Cash and receivables 162,00054,000 $ 54,000
Inventory 160,000148,000170,000
Patented technology (net)226,000190,000204,000
Land 406,000200,000238,000
Buildings and equipment (net)120,00088,00088,000
Liabilities (516,000)(378,000)(350,000)
Common stock (292,000)(76,000)
Additional paid-in capital (8,000)(34,000)
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?
Multiple Choice
$116,000.
$258,000.
$332,000.
$656,000.

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