Question: Poppy Corporation Acquires Stevens Company, Paying The Owners Of Stevens 1,000,000 New Shares With A Par Value Of $0.50 Per Share And A Fair Value Of $50 Per Share At The Date Of Acquisition. Poppy Also Incurs Cash Registration Fees Of $100,000 And Consulting Fees Of $700,000. Included In The Agreement Is A Contingency Guaranteeing Stevens Shareholders To
Poppy Corporation acquires Stevens Company, paying the owners of Stevens 1,000,000 new shares with a par value of $0.50 per share and a fair value of $50 per share at the date of acquisition. Poppy also incurs cash registration fees of $100,000 and consulting fees of $700,000. Included in the agreement is a contingency guaranteeing Stevens shareholders to pay $400,000 if sales increase 5% in the current year. Poppy' contingency is almost certain and it is valued at $400,000.
What is Poppy’s reported acquisition cost?