Plant acquisitions for selected companies are as follows.

1. Sheffield Corporation purchased a company car by making a $4,770 cash down payment and signing a 1-year, $21,200, 10% note payable. The purchase was recorded as follows.

Automobiles 28,090

Cash 4,770

Notes Payable 21,200

Interest Payable 2,120

2. As an inducement to locate its new branch office in the city of Greenwood Acres, Oriole Co. received land and a building from the city at no cost. The appraised value of the land was $53,000. The appraised value of the building was $185,500. Since it paid nothing for the land and building, Oriole Co. made no journal entry to record the transaction.

3. Coronado Corporation purchased warehouse shelving for $106,000, terms 1/10, n/30. At the purchase date, Coronado intended to take the discount. Therefore, it made no entry until it paid for the acquisition. The entry was:

Warehouse fixtures 106,000

Cash 104,940

Purchase Discounts 1,060

4. Ivanhoe Company built a piece of equipment for its factory. The cost of constructing the equipment was $169,600. Ivanhoe could have purchased the equipment for $201,400. The controller made the following entry.

Equipment 201,400

Cash, Materials, etc. 169,600

Profir on Construction 31,800

5. Sage Hill Inc. acquired land, buildings, and equipment from Sale Corp., for a lump-sum price of $1,060,000. The book values of the assets on Sales books at the date of purchase, as well as fair values for the assets, based on an appraisal performed shortly before the purchase, were as follows.

Asset Book Value Fair Value

Land $265,000 $371,000

Buildings 477,000 689,000

Equipment 530,000 318,000

Total $1,272,000 $1,378,000

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

Land 265,000

Buildings 477,000

Equipment 318,000

Cash 1,060,000