Problems 16 through 19 are based on the following information: On July 1. TruData Company issues 10.000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's pre- combination book and fair values are shown along with book values for TruData's accounts as follows. TruData Book Values Webstat Fair Values Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $(130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) $ 60,000 175,000 200,000 225,000 75,000 (350,000) 19. On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1? a. $130,000 b. S210,000 c. S260,000 d. S510,000