Reference no: EM131790575
Assignment
The financial balances for the Atwood Company and the Franz Company as of December 31, 2013, are presented below. Also included are the fair value for the Franz Company's net assets.
Atwood Franz Co. Franz Co.
(All numbers are in thousands)
Book Value Book Value Fair Value
12/31/2013 12/31/2013 1 2/31/2013
Cash $ 870 $ 240 $ 240
Receivables 660 600 600
Inventory 1,230 420 580
Building(net) 1,800 260 250
Equipment(net) 1,800 540 650
Account Payable 660 380 400
Accured expenses (570) (240) (240)
Long term liabilities (2700) (1020) (1120)
Common stock($20 par) (1980)
Common stock($5 par) (420)
Additional Paid- in capital (210) (180)
Retained earnings (1170) (480)
Revenues (2880) (660)
Expenses 2760 60
Note: Parentheses indicate a credit balance.
Assume an acquisition business combination took place at December 31, 2013. Atwood issued 50 shares of its common stock with a fair value of 35 per share for all of the outstanding common shares of Franz. Stock issuance cost of $ 15 (in thousands) and direct costs of $ 10 (in thousands) were paid.
Compute consolidated long-term liabilities at the date of the acquisition.
0 $ 2,700
0 $ 2,800
0 $ 3,720
0 $ 3,820
0 $ 2,600.