Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2012, for $3,800 cash. As of that date Hurley has the following trial balance:

Debit

Credit

Cash

500

Accounts receivable

600

Inventory

800

Buildings (net) (5 year life)

1,500

Equipment (net) (2 year life)

1,000

Land

900

Accounts payable

400

Long term liabllities (due 12/31/15)

1,800

Common stock

1,000

Additional paid-in capital

600

Retained earnings

1,500

Total

5,300

5,300

Net income and dividends reported by Hurley for 2012 and 2013 follow:

2012

2013

Net income

100

120

Dividends

30

40

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

Fair Value

Inventory

900

Buildings

1,200

Equipment

1,250

Land

1,300

Long-term liabilities

1,700

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.

Compute the amount of total expenses reported in an income statement for the year ended December 31, 2012, in order to recognize acquisition-date allocations of fair value and book value differences,

Compute the amount of Hurley's long-term liabilities that would be reported in a December 31, 2013, consolidated balance sheet.