1. Novak Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $1,050,000. At the time of purchase, Torres's assets had the following book and appraisal values. Land Buildings Equipment Land Book Values $300,000 375,000 Cash 450,000 225,000 Buildings 375,000 Equipment 450,000 Appraisal Values To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. $225,000 525,000 1,050,000 450,000 SUPPORT

Plant acquisitions for selected companies are as follows. 1. Novak Industries Inc, acquired land, buildings, and equipment from a bankrupt company. Torres Co_for a lump-sum price of $1.050.000. At the time of purchase, Torres's assets had the following book and appraisal values. To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made