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Compute consolidated long-term liabilities

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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.

Reference no: EM131790575

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