On January 1, 2019, Spider paid $10,000 in cash and issued 300 shares of its $10 par value common stock to the owners of Kendall Company to acquire all of Kendall's common stock.On that date, Spider's shares had a fair value of $40 per share.Spider also agreed to pay an additional amount of cash to Kendall's shareholders on January 1, 2020 if Spider's net income for 2019 exceeds $10,000.The probability-adjusted present value of that payment is $3,430.Finally, Spider paid $2,500 in brokerage fees and $3,500 in legal fees related to this acquisition.

Compute the cost at which Spider should record this investment. (Show your computations.)