The financial balances for the Atwood Company and the Franz Company as of December 31, 2018, are presented below. Also included are the fair values for Franz Company's net assets. Atwood FranzCo. FranzCo.?(all numbers are in thousands) Book value Book value Fair value 12/31/2018 12/31/2018 12/31/2018Cash$870 $240 $240 Receivables 660 600 600 Inventories 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240)Accrued expenses (270) (60) (60)Long-term liabilities (2,700) (1,020) (1,120)Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in
capital (210) (180) Retained earnings (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 ??Note: Parenthesis indicate a credit balance??Assume an acquisition business combination took place at December 31, 2018. 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 costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.?Compute consolidated cash at the completion of the acquisition.
A. $1,110.
B. $845.
C. $1,085.
D. $1,350.
E. $870.
Answer: C
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