Exercise 10-6 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 $904,400. At the time of purchase, Torress assets had the following book and appraisal values. Book Values Appraisal Values Land $258,400 $193,800 Buildings 323,000 452,200 Equipment 387,600 387,600 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 193,800 Buildings 323,000 Equipment 387,600 Cash 904,400 2. Harry Enterprises purchased store equipment by making a $2,584 cash down payment and signing a 1-year, $29,716, 10% note payable. The purchase was recorded as follows. Equipment 35,272 Cash 2,584 Notes Payable 29,716 Interest Payable 2,972 3. Kim Company purchased office equipment for $20,500, 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 20,500 Cash 20,090 Purchase Discounts 410 4. Kaisson Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $34,884. The company made no entry to record the land because it had no cost basis. 5. Zimmerman Company built a warehouse for $775,200. It could have purchased the building for $956,080. The controller made the following entry. Buildings 956,080 Cash 775,200 Profit on Construction 180,880 Prepare the entry that should have been made at the date of each acquisition. (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. Round answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5.