Exercise 10-6 Your answer is partially correct. Try again. Plant acquisitions for selected companies are as follows. 1. Swifty Industries Inc. acqulred land, buildings, and equlpment 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 appralsal values Book Values $236,000 295,000 354,000 Appraisal Values Land $177,000 413,000 354,000 Buildings 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. Nash Enterprises purchased store equipment by making a $2,360 cash down payment and signing a 1-year, $27,140, 10% note payable. The purchase was recorded as follows. Equipment 32,214 Cash Notes Payable Interest Payable 2,360 27,140 2,714 3. Crane 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 20,286 Purchase Discounts 414 4. Cheyenne 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 $31,860, The company made no entry to record the land because it had no cost basis. 5. Ayayai Company built a warehouse for $708,000. It could have purchased the building for $873,200. The controller made the following entry. Buildings 873,200 Cash 708,000 165,200 Profit on Construction Prepare the entry that should have been made at the date of each acquisition. (Round intermediate calculations to 5 decimal palces, e.g. 0.56487 and final answers to o decimal places, e.g. 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.)