1. The following are PPE acquisitions for selected companies: 1. French Horn Company acquired land, buildings, and equipment from afinancially distressed company, Bankrupt Corp., for a lump sum price of P2,800,000. 0n the acquisition date, Bankrupt's asset had the following book and fair values: Book Value Fair Value Land P800000 P600,000 Buildings 1,000,000 1,400,000 Equipment 1,200,000 1,200,000 French Horn decided to take a conservative position by recording the lower of the two values for each PPE item acquired. The following entry was made: Land 600,000 Buildings 1,000,000 Equipment 1,200,000 Cash 2,800,000 2 Trumpet, Inc. purchased factory equipment by making a P100,000 cash down payment and signing a 3-year P1,150,000, 10% note payable. The acquisition was recorded as follows: Factory Equipment 1,365,000 Cash 100,000 Note Payable 1,150,000 Interest Payable 115,000 3 Tuba purchased store equipment for P1,000,000. terms 2f10, ni'30. The took the discount and made the following entry when it paid for the acquisition: Store Equipment 1,000,000 Cash 980,000 Purchase discount 20,000 4 Trombone Company recently received at no cost land from its stockholder. The land's fair value is P1,350,000. No entry was made to record the land because it had no cost. 5 Flute Corp. constructed a building at a cost of P30,000,000. The building could have been purchased for P3?,000,000. The companys controller made the following entry: Building 37,000,000 Cash 30,000,000 Profit on construction 7,000,000 Prepare the necessary correcting entry for each acquisition. ACQUISITION OF EQUIPMENT ON A DEFERRED PAYMENT BASIS