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Exercise 10-6 Plant acquisitions for selected companies are as follows. 1. Flint 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 Appraisal Values $300,000 $225,000 Land Buildings 525,000 375,000 450,000 Equipment 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 225,000 Buildings 375,000 Equipment 450,000 Cash 1,050,000 2. Buffalo 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 3,000 Notes Payable 34,500 Interest Payable 3,450 3. Carla Company purchased office equipment for $19,400, terms 2/10, n/3 Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was 0. Equipment 19,400 19,012 Cash Purchase Discounts 388