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. Atwood Franz Co. Franz Co (all amounts in thousands) Book Value Book Value Fair Value 12/31/14 12/31/14 12/31/14 $ 240 $ 240 600 600 $ 870 660 1.230 1.800 1.800 Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Accrued expenses Long-term liabilities Common stock (520 par) Common stock (S5 par) Additional paid in capital Retained earnings (570) (270) (2,700) (1,980) 260 540 380 ( 240) ( 60) (1,020) (240) ( 60) (1.120) (210) (1.170) (2880) 2,760 (420) (180) (480) (660) 620 Expenses Note: Parenthesis indicate credit balance Assume a business combination took place at December 31, 2012. Arwood issued 50 shares of its common stock with a far 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 on thousands were paid to effect this acquisition transaction. To settle a difference of opinion regarding Franz's for value. Atwood promises to pay an additional $52 in thousands to the former owners of Frant's earnings exceed a certain sum during the next year. Given the probability of the required contingency payment and big 4% discount rate, the expected present value of the contingency is SS in thousands Comcute consolidated expenses at date of acouisition $2.735 52760 $2.770 $2.785 $3.380 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. Atwood Franz Co. Franz Co (all amounts in thousands) Book Value Book Value Fair Value 12/31/14 12/31/14 12/31/14 $ 240 $ 240 600 600 $ 870 660 1.230 1.800 1.800 Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Accrued expenses Long-term liabilities Common stock (520 par) Common stock (S5 par) Additional paid in capital Retained earnings (570) (270) (2,700) (1,980) 260 540 380 ( 240) ( 60) (1,020) (240) ( 60) (1.120) (210) (1.170) (2880) 2,760 (420) (180) (480) (660) 620 Expenses Note: Parenthesis indicate credit balance Assume a business combination took place at December 31, 2012. Arwood issued 50 shares of its common stock with a far 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 on thousands were paid to effect this acquisition transaction. To settle a difference of opinion regarding Franz's for value. Atwood promises to pay an additional $52 in thousands to the former owners of Frant's earnings exceed a certain sum during the next year. Given the probability of the required contingency payment and big 4% discount rate, the expected present value of the contingency is SS in thousands Comcute consolidated expenses at date of acouisition $2.735 52760 $2.770 $2.785 $3.380
