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 Book Values Webstat Fair Values Revenues (1/1 to 7/1) $(250,000) Expenses (1/1 to 7/1) 170,000 Retained earnings, 1/1 (130,000) $(130,000) 80,000 (150,000) Cash and receivables 140,000 60,000 $ 60,000 Inventory 190,000 145,000 175,000 Patented technology (net) 230,000 180,000 200,000 Land 400,000 200,000 225,000 Buildings and equipment (net) 100,000 75,000 75,000 Liabilities (540,000) (360,000) (350,000) Common stock (300,000) (70,000) Additional paid-in capital (10,000) (30,000) 19. On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1? a. $130,000 b. $210,000 c. $260,000 d. $510,000