What amount should trudata report as retained earnings

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Reference no: EM132466098

On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $50 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts.

 

TruData
Book Values

Webstat
Book Values

Webstat
Fair Values

Revenues (1/1 to 7/1)

$         (288,200)

$     (172,000)

 

Expenses (1/1 to 7/1)

192,000

86,000

 

Retained earnings, 1/1

(134,000)

(140,000)

 

Cash and receivables

168,000

76,000

$        76,000

Inventory

186,000

148,000

170,000

Patented technology (net)

228,000

178,000

202,000

Land

382,000

198,000

238,000

Buildings and equipment (net)

102,000

90,000

90,000

Liabilities

(532,000)

(370,000)

(346,000)

Common stock

(294,000)

(62,000)

 

Additional paid-in capital

(9,800)

(32,000)

 


Question 1:
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?

Reference no: EM132466098

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