Presented below are the financial balances for the Atwood Company and the Franz Company as of December 31, 2012, immediately before Atwood acquired Franz. Also included are the fair values for Franz Company's net assets at that date Franz Co. (all amounts in thousands) Book Value Franz Co. Book Value Fair Value S 870 660 1,230 1,800 1,800 660 570) 270) (2,700) (1,980) S 240 600 580 250 650 400 240) 60) (1,120) Cash Receivables Land Buildings (net) Equipment (net) Accounts payable Accrued expenses Long-term liabilities Common stock ($20 par) Common stock (S5 par) Additional paid-in capital Retained earnings Revenues S 240 600 420 260 540 380 240) 60) (1,020) 420) 210) (1,170) (2,880) 2,760 480) 660) 620 Note: Parenthesis Indicate a credit balance Assume a business combination took place at December 31, 2012. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid to effect this acquisition transaction. To settle a difference of opinion regarding Franz's fair value, Atwood promises to pay an additional $5.2 (in thousands) to the former owners if Franz's earnings exceed a certain sum during the next year. Given the probability of the required contingency payment and utilizing a 4% discount rate, the expected present value of the contingency is $5 (in thousands). Compute consolidated equipment at date of acquisition. O $660. O $1.050. O $1,040 O $1.060. ? $400