Presented below are the financial balances for the Atwood Company and the Franz Company as of December 31, 2009, 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 book value Dec. 31 Dec. 31 Dec.31 2008 2008 2008 Cash $870 $240 $240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Building (net) 1,800 540 650 Equipment (net) 660 380 400 Account payable ( 570) ( 240) ( 240) accrued expenses( 270) ( 60) ( 60) long-term liabilities(2,700) (1,020) (1,120) common stock(20par) (1,980) common stock(5par) ( 420) additional paid in cap. (210) ( 180) retained earnings (1,170) ( 480) revenues (2,880) ( 660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume a business combination took place at December 31, 2009. 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 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 goodwill at date of acquisition. A. $455 B. $460 C. $450 D. $440 E. $465