On September 29, year 2, Wall Co. paid $860,000 for all the issued and outstanding common stock of Hart Corp. On that date, the carrying amounts of Harts recorded assets and liabilities were $800,000 and $180,000, respectively. Harts recorded assets and liabilities had fair values of$840,000 and $140,000, respectively. In Walls September 30, year 2 balance sheet, what amount should be reported as goodwill?

• $180,000

• $20,000

• $240,000

• $160,000

The following information was abstracted from the accounts of the Oar Corporation at December 31, year 2:

Total income since incorporation	$840,000
Total cash dividends paid	$260,000
Proceeds from sale of donated stock (FV on date of donation was $30,000)	$90,000
Total value of stock dividends distributed	$60,000
Excess of proceeds over cost of treasury stock sold	$140,000

The donated stock was classified as a trading security. What should be the current balance of retained earnings?

• $610,000

• $520,000

• $670,000

• $580,000