Plant acquisitions for selected companies are as follows. 1. Splish Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $1,036,000. At the time of purchase, Torres's assets had the following book and appraisal values. Land Buildings Equipment Book Values Land $296,000 370,000 444,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. 222,000 Appraisal Values Buildings 370,000 Equipment 444,000 $222,000 518,000 444,000 ( 3 ((C

Plant acquisitions for selected companies are as follows. 1. Splish Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $1,036,000. At the time of purchase, Torres's assets had the following book and appraisal values. To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made