On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $726,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $260,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 324,000 $524,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Pic Sic Year 5 Retained earnings, beginning of year Profit Dividends Retained earnings, end of year $ 548,000 178,000 (100,000) $ 626,000 Year 6 $ 626,000 159,000 (120,000) $ 665,000 Year 5 $ 324,000 146,500 (90,000) $ 380,500 Year 6 $ 380,500 159,500 (90,000) $450,000