On August 31, 2018, Jeffrey Corp. issued 100,000 shares of its $20 par value common stock for the net assets of

Matty Inc. in a business combination accounted for as a purchase. The market value of Jeffrey's common stock on

8.31.18 was $56 per share. Jeffrey also paid a fee of $420,000 to Amy CPA who arranged this transaction. Costs of

registering and issuing the equity securities amounted to $220,000. No goodwill was involved in the purchase. What

amount should Jeffrey capitalize as the cost of acquiring Matty's net assets?