1. Ivanhoe Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $726,000. At the time of purchase. Torres's assets had the following book and appraisal values: Land Book Value $193,000 245.000 341,000 Appraisal Value $140,000 350,000 341,000 Buildings Equipment Ivanhoe Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 140,000 245,000 Buildings Equipment Cash 341,000 726,000 Ivanhoe 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 19% 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 $26.000, one-year, 11% note payable. The purchase was recorded as follows: 30,860 2,000 Equipment Cash Notes Payable Interest Payable 26,000 2,860 3. Kim Company purchased equipment for $23,800, terms 3/10,n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: 23,800 23,086 Equipment Cash Purchase Discounts 714 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 $33,400. The company made no entry to record the land because it had no cost basis. 5. Zimmerman Company built a warehouse for $621,000. It could have contracted out and purchased the building for $746,000. The controller made the following entry: Buildings 746,000 Cash 621,000 Sales Revenue 125,000 Prepare 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 for the amounts. Do not round intermediate calculations. Round final answers to decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit 1. 2.