ACQUISITIONS Acquisition of Turner On May 30, 2018 , the Company acquired all of the equity of Turner, a rate regulated non-potable irrigation water utility in Mesa, Arizona, for total consideration of $2.8 million . This acquisition is consistent with the Company's declared strategy of making accretive acquisitions. At the time of acquisition, Turner had 963 residential irrigation connections and approximately seven square miles of service area. The acquisition was accounted for as a business combination under ASC 805, " Business Combinations ." The purchase price was allocated to the acquired utility assets and liabilities assumed based on the seller's book value at acquisition as the historical cost of these assets and liabilities will be the amounts that will continue to be reflected in customer rates. Final purchase price allocation of the net assets acquired in the transaction is as follows (in thousands): Net assets acquired: Cash $ 176 Accounts receivable 121 Gross property, plant and equipment 4,495 Construction work-in-progress 92 Accumulated depreciation (3,554 ) Accounts payable (30 ) Accrued expenses (49 ) Total net assets assumed 1,251 Goodwill 1,549 Total purchase price $ 2,800 The revenue and earnings recognized post acquisition and the pro forma effect of the business acquired are not material to the Company's financial position or results of operations. Acquisition of Red Rock On October 16, 2018, the Company acquired Red Rock, a rate-regulated operator of a water and a wastewater utility with service areas in the Pima and Pinal counties of Arizona, for total consideration of $5.9 million . This acquisition is consistent with the Company's declared strategy of making accretive acquisitions. The acquisition added over 1,650 connections and approximately nine square miles of service area. The acquisition was accounted for as a business combination under ASC 805, " Business Combinations ." The purchase price was allocated to the acquired utility assets and liabilities assumed based on the seller's book value at acquisition as the historical cost of these assets and liabilities will be the amounts that will continue to be reflected in customer rates. Based on additional information as of September 30, 2019, the initial fair value of net assets decreased an additional $1.8 million , with a corresponding increase to goodwill of $1.8 million . Under the terms of the purchase agreement, the Company is obligated to pay to the seller a growth premium equal to $750 for each new account established within three specified growth premium areas, commencing in each area on the date of the first meter installation and ending on the earlier of ten years after such first installation date or twenty years from the acquisition date. The three specified growth premium areas are located in Pima County, Arizona where Red Rock has not yet begun operating, and where Red Rock is authorized to provide water utility services only. As of September 30, 2019 , no meters have been installed and no accounts have been established in any of the three growth premium areas. The fair value of the acquisition liability was determined based on management's estimates and assumptions regarding the probability that connection growth will be achieved during the growth premium period. Any subsequent adjustments to the fair value estimate will be recorded to earnings. Refer to Note 11  "Fair Value" of the notes to the unaudited condensed consolidated financial statements for additional information. Final purchase price allocation of the net assets acquired in the transaction, reflecting additional information discussed above is as follows (in thousands): Net assets acquired: Accounts receivable $ 111 Gross property, plant and equipment 19,841 Construction work-in-progress 748 Accumulated depreciation (6,084 ) Prepaids 12 Intangibles 1 196 Accounts payable (26 ) Other taxes (14 ) Other accrued liabilities (47 ) Customer and meter deposits (76 ) AIAC (3,423 ) CIAC - Net (7,397 ) Acquisition liability (838 ) Total net assets assumed 3,003 Goodwill 2,848 Total purchase price $ 5,851 1 Intangibles consist of franchise contract rights and organizational costs. Refer to Note 8  "Goodwill &amp; Intangible Assets" of the notes to the unaudited condensed consolidated financial statements for additional discussion. The revenue and earnings recognized post acquisition and the pro forma effect of the business acquired are not material to the Company's financial position or results of operations.