Plant acquisitions for selected companies are as follows.

1. Nash Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $952,000. At the time of purchase, Torress assets had the following book and appraisal values.

Book Values Appraisal Values

Land $272,000 $204,000

Buildings 340,000 476,000

Equipment 408,000 408,000

To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.

Land 204,000

Buildings 340,000

Equipment 408,000

Cash 952,000

2. Crane Enterprises purchased store equipment by making a $2,720 cash down payment and signing a 1-year, $31,280, 10% note payable. The purchase was recorded as follows.

Equipment 37,128

Cash 2,720

Notes Payable 31,280

Interest Payable 3,128

3. Cheyenne Company purchased office equipment for $19,800, 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 19,800

Cash 19,404

Purchase Discounts 396

4. Ayayai 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 $36,720. The company made no entry to record the land because it had no cost basis.

5. Pina Company built a warehouse for $816,000. It could have purchased the building for $1,006,400. The controller made the following entry.

Buildings 1,006,400

Cash 816,000

Profit on Construction 190,400