Indigo Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $924,000. At the time of purchase, Torres's assets had the following book and appraisal values.
Book Values Appraisal Values
Land..................$264,000..............................$198,000
Buildings...............330,000...............................462,000
Equipment.............396,000...............................396,000
To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.
Land...................................198,000
Buildings..............................330,000
Equipment............................396,000
Cash.....................................................................924,000
Prepare the entry that should have been made at the date of each acquisition.