Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:

	Debit				Credit
Cash	$	500
Accounts receivable		600
Inventory		900
Buildings (net) (5 year life)		1,600
Equipment (net) (2 year life)		1,000
Land		900
Accounts payable					$	400
Long-term liabilities (due 12/31/22)						1,900
Common stock						1,000
Additional paid-in capital						700
Retained earnings						1,500
Total	$	5,500			$	5,500

Net income and dividends reported by Clark for 2020 and 2021 follow:

	2020			2021
Net income	$	120		$	140
Dividends		40			50

The fair value of Clarks net assets that differ from their book values are listed below:

	Fair Value
Buildings	$	1,200
Equipment		1,350
Land		1,300
Long-term liabilities		1,750

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.

Compute the amount of Clarks long-term liabilities that would be reported in a December 31, 2020, consolidated balance sheet.

Multiple Choice

$1,700.

$1,750.

$1,800.

$1,850.

$1,900.