Acquiring net assets that do not constitute a business

Assume that on January 1, 2016 an investor company paid $1,050 to an investee company in exchange for the following assets and liabilities transferred from the investee company:

Asset (Liability)	Estimated Fair Value
Production equipment	$300
Factory	500
Licenses	350
Accrued liability	(150)

In addition, assume that the investor paid an additional $50 of transaction costs to a third party. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement.

Assume the net assets transferred from the investee do not qualify as a business, as that term is defined in FASB ASC Master Glossary. At what amount will the Licenses be reported in the financial statements of the acquiring company on January 1, 2016?

Select one:

A. $350

B. $400

C. $385

D. $368