On January 1, Year S, Pic Company acquired 7,500 ordinary shares of Sic Compony for $708,000. On January 1, Year 6, Pic Compony acquired on additional 2,000 ordinary shores of Sic Company for $212,000. On January 1, Year S, the shareholders' equity of Sic wes as follows: Ordinary shares (Ie,ae no par value shares issued) s 2ee,eae Retained earnings 3E,eae sse3,eae The following are the statements of retained earnings for the two companies for Years S end 6: Retained earnings, Profit Dividends Retained earnings , beginning of year end o-f year Year 5 S se6,eae 165, eae (lee,eae) S 571,eae Year S S 571,eae 160, sae (12e,eae) S 611, sae Year 5 S 3E,eae 118, sae (ge,eae) S 331, sae Year S S 331, sae 156, sae (ge,eae) S 398,eae Additional Information Pic uses the cost method to account for its investment in Sic. Any acquisition differential is allocated to customer contracts, which ere expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. There were no unrealized profits from intercompany transections since the dete of acquisition.