diff --git a/core/src/main/java/org/bitcoinj/core/TransactionConfidence.java b/core/src/main/java/org/bitcoinj/core/TransactionConfidence.java
index e3e706914d3..6d0a7dec3d2 100644
--- a/core/src/main/java/org/bitcoinj/core/TransactionConfidence.java
+++ b/core/src/main/java/org/bitcoinj/core/TransactionConfidence.java
@@ -112,12 +112,12 @@ public enum ConfidenceType {
          * If a transaction hasn't been broadcast yet, or there's no record of it, its confidence is UNKNOWN.
          */
         UNKNOWN(0);
-
+        
         private int value;
         ConfidenceType(int value) {
             this.value = value;
         }
-
+        
         public int getValue() {
             return value;
         }
@@ -262,7 +262,7 @@ public synchronized ConfidenceType getConfidenceType() {
     }
 
     /**
-     * Called by other objects in the system, like a {@link Wallet}, when new information about the confidence of a
+     * Called by other objects in the system, like a {@link Wallet}, when new information about the confidence of a 
      * transaction becomes available.
      */
     public synchronized void setConfidenceType(ConfidenceType confidenceType) {
@@ -368,11 +368,8 @@ public synchronized String toString() {
      *
      * @return the new depth
      */
-    public synchronized int incrementDepthInBlocks(int height) {
-        if (getAppearedAtChainHeight() != -1)
-            this.depth = height - getAppearedAtChainHeight() + 1;
-
-        return this.depth;
+    public synchronized int incrementDepthInBlocks() {
+        return ++this.depth;
     }
 
     /**
@@ -381,7 +378,7 @@ public synchronized int incrementDepthInBlocks(int height) {
      * considers a transaction impractical to reverse after 6 blocks, but as of EOY 2011 network
      * security is high enough that often only one block is considered enough even for high value transactions. For low
      * value transactions like songs, or other cheap items, no blocks at all may be necessary.</p>
-     *
+     *     
      * <p>If the transaction appears in the top block, the depth is one. If it's anything else (pending, dead, unknown)
      * the depth is zero.</p>
      */
diff --git a/core/src/main/java/org/bitcoinj/wallet/Wallet.java b/core/src/main/java/org/bitcoinj/wallet/Wallet.java
index 8e11e4538b0..72c9e24a6dc 100644
--- a/core/src/main/java/org/bitcoinj/wallet/Wallet.java
+++ b/core/src/main/java/org/bitcoinj/wallet/Wallet.java
@@ -376,7 +376,7 @@ public DeterministicKeyChain getActiveKeyChain() {
     public DeterministicKeyChain getActiveKeychain() {
         return keyChainGroup.getActiveKeyChain();
     }
-
+    
     /**
      * <p>Adds given transaction signer to the list of signers. It will be added to the end of the signers list, so if
      * this wallet already has some signers added, given signer will be executed after all of them.</p>
@@ -823,7 +823,7 @@ public DeterministicKey getWatchingKey() {
     /**
      * Returns whether this wallet consists entirely of watching keys (unencrypted keys with no private part). Mixed
      * wallets are forbidden.
-     *
+     * 
      * @throws IllegalStateException
      *             if there are no keys, or if there is a mix between watching and non-watching keys.
      */
@@ -1683,6 +1683,11 @@ public void receivePending(Transaction tx, @Nullable List<Transaction> dependenc
         // returned true, so we already know by this point that it sends coins to or from our wallet, or is a double
         // spend against one of our other pending transactions.
         lock.lock();
+
+        // Clone transaction to avoid multiple wallets pointing to the same transaction. This can happen when
+        // two wallets depend on the same transaction.
+        tx = tx.getParams().getDefaultSerializer().makeTransaction(tx.bitcoinSerialize());
+
         try {
             tx.verify();
             // Ignore it if we already know about this transaction. Receiving a pending transaction never moves it
@@ -2118,8 +2123,7 @@ public void notifyNewBestBlock(StoredBlock block) throws VerificationException {
         try {
             // Store the new block hash.
             setLastBlockSeenHash(newBlockHash);
-            final int blockHeight = block.getHeight();
-            setLastBlockSeenHeight(blockHeight);
+            setLastBlockSeenHeight(block.getHeight());
             setLastBlockSeenTimeSecs(block.getHeader().getTimeSeconds());
             // Notify all the BUILDING transactions of the new block.
             // This is so that they can update their depth.
@@ -2139,7 +2143,7 @@ public void notifyNewBestBlock(StoredBlock block) throws VerificationException {
                         // included once again. We could have a separate was-in-chain-and-now-isn't confidence type
                         // but this way is backwards compatible with existing software, and the new state probably
                         // wouldn't mean anything different to just remembering peers anyway.
-                        if (confidence.incrementDepthInBlocks(blockHeight) > context.getEventHorizon())
+                        if (confidence.incrementDepthInBlocks() > context.getEventHorizon())
                             confidence.clearBroadcastBy();
                         confidenceChanged.put(tx, TransactionConfidence.Listener.ChangeReason.DEPTH);
                     }
@@ -4665,10 +4669,10 @@ public BloomFilter getBloomFilter(double falsePositiveRate) {
      * <p>Gets a bloom filter that contains all of the public keys from this wallet, and which will provide the given
      * false-positive rate if it has size elements. Keep in mind that you will get 2 elements in the bloom filter for
      * each key in the wallet, for the public key and the hash of the public key (address form).</p>
-     *
+     * 
      * <p>This is used to generate a BloomFilter which can be {@link BloomFilter#merge(BloomFilter)}d with another.
      * It could also be used if you have a specific target for the filter's size.</p>
-     *
+     * 
      * <p>See the docs for {@link BloomFilter(int, double)} for a brief explanation of anonymity when using bloom
      * filters.</p>
      */
@@ -4862,7 +4866,7 @@ public FeeCalculation calculateFee(SendRequest req, Coin value, List<Transaction
             } else {
                 fees = fees.add(req.feePerKb);  // First time around the loop.
             }
-
+            
             if (needAtLeastReferenceFee && fees.compareTo(Transaction.REFERENCE_DEFAULT_MIN_TX_FEE) < 0)
                 fees = Transaction.REFERENCE_DEFAULT_MIN_TX_FEE;