Exercise 10-6 Plant acquisitions for selected companies are as follows 1. Pearl Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $728,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $208,000 $156,000 Buildings 260,000 364,000 Equipment 312,000 312,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made Land 156,000 Buildings 260,000 312.000 Equipment Cash 728,000 2. Martinez Enterprises purchased store equipment by making $2.080 cash down payment and signing a 1-vear, $23.920, 10 % note pavable. The purchase was recorded as follows. 28,392 Equipment Cash 2,080 Notes Payable 23,920 Interest Payable 2,392 take the discount, it made no entry until it paid for the acquisition. The entry was: 3. Sandhill Company purchased office equipment for $21,400, terms 2/10, n/30. Because the company intended 21,400 Equipment Cash 20,972 Purchase Discounts 428 the Village. The appraised value f the land is $28,080. The company made no 4. Teal Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business entry record the land because it had no cost basis. 5. Flint Company built a warehouse for $624,000. could have purchased the building for $769,600. The controller made the following entry. 769,600 Buildings Cash 624,000 Profit on Construction 145,600 Prepare the entry that should have been made e.q. 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 0 for the amounts.) : the date of each acquisition. (Round intermediate calculations to 5 decimal palces, e.g. 0.56487 and final answers to 0 decimal places, No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5