On December 31, 2020, Orange Company issued 30,000 shares of its common stock with a fair value of $50 per share for all of the outstanding common shares of June Company. Stock issuance costs of $4,000 and direct costs of $1,000 were paid. In addition, Orange promised to pay an additional $5,200 to the former owners of Jones earnings exceed a certain amount during the next year. The fair value of the potential obligation is estimated at $3,000. Compute the investment to be recorded at date of acquisition.

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.