The financial balances for the Atwood Company and the Franz Company as of December 31, 2013, are presented below. Also included are the fair values for Franz Company's net assets.

	Atwood Book Value 12/31/20xx	Framz Co (in thousands) Book Value 12/31/13	Franz Co Fair value 12/31/13
cash	870	240	240
receivables	660	600	600
land	1230	420	580
building(net)	1800	260	250
equipment(net)	1800	540	650
accounts payable	660	380	400
accrued expense	(570)	(240)	(240)
long-term liabilities	(2700)	1020)	(1120)
common stock (20 par)	(1980)
common stock (5 par)		(420)
add paid in capital	(210)	(180)
retained earning	(1170)	(480)
revenues	(2880)	(660)
expenses	2760	620

Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2013. 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. Compute fair value of the net assets acquired at the date of the acquisition.

$1,300.

$1,340.

$1,500.

$1,750.

$2,480.

Compute consolidated expenses at the date of the acquisition.

$2,760.

$2,770.

$2,785.

$3,380.