Exercise 10-6 Plant acquisitions for selected companies are as follows. 1. Bridgeport Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co, for a lump-sum price of $826,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values $236,000 295,000 354,000 Appraisal Values Land Buildings Equipment $177,000 413,000 354,000 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 177,000 295,000 354,000 Cash 826,000 2. Indigo Enterprises purchased store equipment by making $2,360 cash down payment and signing 1-year, S27, 140, 10% note payable. The purchase was recorded as follows. Equipment 32,214 Cash Notes Payable Interest Payable 2,360 27,140 2,714 3. Sweet Company purchased office equipment for $20,700, 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: Equipment 20,700 Cash Purchase Discounts 20,286 414