Exercise 10-06 Plant acquisitions for selected companies are as follows. 1. Belanna Industries Inc, acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump sum price of $700,000. At the time of purchase, Torres's assets had the following book and appraisal values. Appraisal Values Land Buildings Equipment Book Values $200,000 250,000 300,000 $150,000 350,000 300,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land Buildings Equipment Cash 150,000 250,000 300,000 700,000 2. Harry Enterprises purchased store equipment by making a $2,000 cash down payment and signing a 1year, $23,000, 10% note payable. The purchase was recorded as follows. Equipment 27,300 Cash 2,000 Notes Payable 23,000 Interest Payable 2.300 3. Kim Company purchased office equipment for $20,000, 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: interest Payable 2,300 3. Kim Company purchased office equipment for $20,000, terms 2/10, 1/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition The entry was: 20,000 Equipment Cash Purchase Discounts 19.000 400 4. Kalsson Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the viage. The appraised value of the land is $27,000 The company made no entry to record the land because it had no cost basis. 5. Zimmerman Company built a warehouse for $600,000. It could have purchased the building for $740,000. The controller made the following entry. 740,000 Buildings Cash Profit on Construction 600,000 140,000 Prepare the entry that should have been made at the date of each acquisition. (Round intermediate calculations to 5 decimal palces, 0.0.0.56-487 and final answers to o decimal places, 0.5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit