The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands).     Atwood Franz Co. Franz Co. Book Value Book Value Fair Value   12/31/2021 12/31/2021 12/31/2021 Cash $ 870     $ 240     $ 240   Receivables   660       600       600   Inventory   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 1/1/18   (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, 2021. 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 equipment (net) at the date of the acquisition.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands).

 

  Atwood Franz Co. Franz Co.
Book Value Book Value Fair Value
  12/31/2021 12/31/2021 12/31/2021
Cash $ 870     $ 240     $ 240  
Receivables   660       600       600  
Inventory   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 1/1/18   (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, 2021. 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 equipment (net) at the date of the acquisition.

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