Exercise 10-6 Plant acquisitions for selected companies are as follows 1. Teal 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. Book Values $300,000 375,000 450,000 Appraisal Values Land Buildings Equipment $225,000 525,000 450,000 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 225,000 375,000 450,000 Cash 1,050,000 2. Flint Enterprises purchased store equipment by making a $3,000 cash down payment and signing a 1-year, $34,500, 10% note payable. The purchase was recorded as follows. Equipment 40,950 Cash Notes Payable Interest Payable 3,000 34,500 3,450 3. Buffalo Company purchased office equipment for $19,400, 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 19,400 Cash Purchase Discounts 19,012 388