1. Carla Vista Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $744,000. At the time of purchase, Torres's assets had the following book and appraisal values: Book Value Appraisal Value Land $204,000 $144,000 Buildings 244,000 300,000 356,000 356,000 Equipment Carla Vista Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 356,000 Cash 744,000 2. Carla Vista Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres indicated that, on initial construction of the building, the roof amounted to 25% of the cost of the building. Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 20% of the value of the building purchase. Hari Enterprises purchased equipment by making a $1,900 cash down payment and signing a $27,100, one-year, 10% note payable. The purchase was recorded as follows: Equipment 31,710 1,900 Cash Notes 27.100 Payable Interest 2,710 Payable