1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $1,041,600. At the time of purchase, Torress assets had the following book and appraisal values.

		Book Values			Appraisal Values
Land		$297,600			$223,200
Buildings		372,000			520,800
Equipment		446,400			446,400

To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.

Land		223,200
Buildings		372,000
Equipment		446,400
Cash				1,041,600

2. Harry Enterprises purchased store equipment by making a $2,976 cash down payment and signing a 1-year, $34,224, 10% note payable. The purchase was recorded as follows.

Equipment		40,622
Cash				2,976
Notes Payable				34,224
Interest Payable				3,422

3. Kim Company purchased office equipment for $22,600, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was:

Equipment		22,600
Cash				22,148
Purchase Discounts				452

4. Kaisson Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $40,176. The company made no entry to record the land because it had no cost basis. 5. Zimmerman Company built a warehouse for $892,800. It could have purchased the building for $1,101,120. The controller made the following entry.

Buildings		1,101,120
Cash				892,800
Profit on Construction				208,320

Prepare the entry that should have been made at the date of each acquisition.