Presented below are the financial balances for the Boxwood Company and the Tranz Company as of December 31, 2020, immediately before Boxwood acquired Tranz. Also included are the fair values for Tranz Company's net assets at that date (all amounts in thousands).

	Boxwood				Tranz Co.				Tranz Co.
	Book Value				Book Value				Fair Value
	12/31/20				12/31/20				12/31/20
Cash	$	870			$	240			$	240
Receivables		660				600				600
Inventory		1,230				420				580
Land		1,800				260				250
Buildings (net)		1,800				540				650
Equipment (net)		660				380				400
Accounts payable		(570	)			(240	)			(240	)
Accrued expenses		(270	)			(60	)			(60	)
Long-term liabilities		(2,700	)			(1,020	)			(1,120	)
Common stock ($20 par)		(1,980	)
Common stock ($5 par)						(420	)
Additional paid-in capital		(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, 2020. Boxwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Tranz. 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 Tranzs fair value, Boxwood promises to pay an additional $5.2 (in thousands) to the former owners if Tranzs 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).

1)

Compute the consolidated cash upon completion of the acquisition.

Multiple Choice

• $1,350.

• $1,110.

• $1,080.

• $1,085.

• $635.

2)

Compute consolidated revenues immediately following the acquisition.

Multiple Choice

• $3,540.

• $2,880.

• $1,170.

• $1,650.

• $4,050.