Beatty, Inc. acquires 100% of the voting stock of Gataux Company on January 1, 2017 for $80,000, consisting of $20,000 in cash and 6,000 shares of stock. A contingent payment of $12,000 in cash will be paid on April 1, 2018 if Gataux generates cash flows from operations of $26, 500 or more in the next year. Beatty estimates that there is a 30% probability that Gataux will generate at least $26, 500 next year, and uses an interest rate of 4% to incorporate the time value of money. The fair value of $12,000 at 4%, using a probability-weighted approach, is $3, 461 A contingent payment of $20,000, payable in stock, will be paid to the former owners of Gataux on April 1, 2018 if the market value of Beatty stock drops below $10 per share. Beatty estimates there is a 15% probability that its share price will not exceed that threshold. Using the same interest rate and probability-weighted approach, Beatty calculates the market value of the stock contingency to be $2, 884. On April 1, 2018, Beatty stock closes with a market value of $8.98 per share. How many shares of stock, rounded to the next whole number, must it issue to the former owners of Gataux? Multiple Choice $2, 228. 2, 884. 6,000. $682. $2.000