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In my book, "favors" are usually free.
He's offering to pay for your gas which I think he should (that is a far bit to drive). As for your "time", well you did offer to do him a favor (which should be free) but like you said, this is a good part of the day so ask him to pay for a meal for you and your wife (if she goes) and that should take care of it.
Doing this at a low cost could make this guy more of a friend than an acquaintance.
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"The truth is merely an excuse for lack of imagination." - Garak
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