On August 31, year 1, Wood Corp. issued 100,000 shares of
its $20 par value common stock for the net assets of Pine, Inc., in
a business combination accounted for by the acquisition method.
The market value of Wood’s common stock on August 31 was
$36 per share. Wood paid a fee of $160,000 to the consultant
who arranged this acquisition. Costs of registering and issuing
the equity securities amounted to $80,000. No goodwill was
involved in the acquisition. What amount should Wood capitalize
as the cost of acquiring Pine’s net assets?