In the following situations, determine the value that would be shown in the consolidated financial statements for Atwood Company at date of acquisition.
Assume a purchase took place at December 31, 2000. Atwood issued 50 shares of its common stock with a fair market value of $35 for all of the outstanding common shares of Franz. Stock issuance costs of $15 and direct costs of $10 were paid. Atwood is applying the acquisition method in accounting for Franz. To settle a difference of opinion regarding Franz's fair value, Atwood promises to pay an additional $41,600 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.
Compute consolidated buildings at date of acquisition.