Plant acquisitions for selected companies are as follows: 1. 2. Crane Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $732,000. At the time of purchase, Torres's assets had the following book and appraisal values: Land Buildings Equipment Land Buildings Equipment Book Value Cash $193,000 248,000 339,000 Crane Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: 145,000 248,000 Appraisal Value $145,000 339,000 316,000 732,000 339,000 Crane Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres indicated that, on initial construction of the building, the roof amounted to 25% of the cost of the building. Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 20% of the value of the building purchase. Hari Enterprises purchased equipment by making a $1,700 cash down payment and signing a $26,600, one-year, 11% note pable. The

lant acquisitions for selected companies are as follows: 1. Crane industries inc, acquired land, bullidings, and equipment from a bankrupt company. Torres Co, for a lump-sum price of \$732,000. At the time of purchase, Torres's assets had the following book and appraisal values: Crane industries decided to toke the lower of the fwo values for each asset it acquired. The following entry was made: 732,000 Crane industries expects the building structure to bat snother 20 years: however, it expects that it wid huve to replsce the roof in the next five vears. Torresindicated that, on initial construction of the building, the roof amounted to 25% of the cost structure is currently worth 20 s, of the value of the buildins purctuse. Harl Enterprises purchued equipment by making a $1,700 cas down pwment and slgning a $26,600, one-year, 11% note payable. The purchase was recorded an follows: 1. Kin Comoany burchosed equipment for $20,800,1 rm 2/10 wsa Bocavse the comouny intended to take the discount, it made nowitryonta it poid foe the acquisition The eetry wan: The controllermale the folioning entor Mintinet: 450066 Cain sin000 4. Kalser inc. recently received tand at zero cost from the village of Chester as an inducement to locate its business in the. village. The land's apprahed value was $29.800. The company made no entry to record the land because it had no cost basis. 5. Zimmerman Compamy built a warehouse for $626,000, it could hwe contracted out and purchased the building for $730,000. The controller made the following entry