1. Crane Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $732,000. At the time of purchase, Torres's assets had the following book and appraisal values: Book Value Appraisal Value Land $202,000 $144,000 Buildings 245,000 341,000 Equipment 343,000 343,000 Crane Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 245,000 Equipment 343,000 Cash 732,000 Crane 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 Co. indicated that, on initial construction of the building, the roof amounted to 22% 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 15% of the value of the building purchase. 2. Hari Enterprises purchased equipment by making a $2,000 cash down payment and signing a $24,600, one-year, 12% note payable. The purchase was recorded as follows: Equipment 29,552 Cash 2,000 Notes Payable 24,600 Interest Payable 2,952 3. Kim Company purchased equipment for $26,800, 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 26,800 Cash 26,264 Purchase Discounts 536 4. Kaiser Inc. recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $34,700. The company made no entry to record the land because it had no cost basis. 5. Zimmerman Company built a warehouse for $643,000. It could have contracted out and purchased the building for $733,000. The controller made the following entry: Buildings 733,000 Cash 643,000 Sales Revenue 90,000Prepare the entry that should have been made at the date of each acquisition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit Land 127304 Buildings - Roof 301464 Equipment 303,232 Cash 732,000 Equipment 26600 Cash 2,000 Notes Payable 24,600 3, I Equipment 26,264 Accounts Payable 26,264 Land 34,700 Revenue - Government Grants 34,700 5. Buildings - Root 643,000 Cash 643,000PRINTER VERSION 1 BACK NEXT Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entry in the part above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit