Firm X Is Being Acquired by Firm Y for $35,000

Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 1,200 shares of stock outstanding at a price of $40 a share. What is the actual cost of the acquisition using company stock?

A) $34,750
B) $34,789
C) $35,000
D) $35,289
E) $35,500