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Presented below are the financial balances for the Boxwood Company and the Tranz Company as of December 31, 2023, 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 Book Value 12/31/2023Tranz Book Value 12/31/2023Tranz Fair Value 12/31/2023Cash$ 870$ 240$ 240Receivables660600600Inventory1,230420580Land1,800260250Buildings (net)1,800540650Equipment (net)660380400Accounts 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)Expenses2,760620

Note: Parenthesis indicate a credit balance

Assume a business combination took place at December 31, 2023. 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).

Compute consolidated revenues immediately following the acquisition.

Multiple Choice

$3,540

Incorrect

$2,880

$1,170

$1,650

$4,050

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