Plant acquisitions for selected companies are as follows: Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $765,000. At the time of purchase, Torres's assets had the following book and appraial values: 1. Land Buildings Equipment Book Value $199,000 241,000 373,000 Appraisal Value $151,000 354000 373,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land Buildings Equipment 151,000 241,000 373,000 Cash 765,000 Sandhill 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 Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. In meetings with contractors, due to the unique design and materials required to replace the roof, the contractors stated that the roof structure is currently worth 14% of the value of the building purchase Hari Enterprises purchased store equipment by making a $2,000 cash down payment and signing a $22,300, one year, 12% note payable. The purchase was recorded as follows: 2. Store Equipment 26,976 Cash Notes Payable Interest Payable 2,000 22,300 2,676 Kim Company purchased office equipment for $20,900, terms 1/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: 3. Office Equipment 20,900 Cash 20,691 Purchase Discounts 209 Kaiser Inc. recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $33,200. The company made no entry to record the land because it had no cost basis 4. Zimmerman Company built a warehouse for $667,000. It could have contracted out and purchased the building for $741,000. The controller made the following entry: 5. Buildings 741,000 Cash 667,000 74,000 Gain Your answer is partially correct. Try again Prepare the entry that should have been made at the date of each acquisition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit 132168 Buildings 306350 uipmen 26482 ash 765000 No Entry 2. Store Equipment 724300 ash otes Payable 2300 3. Office Equipment 0,691 ccounts Pavable 0,691 4 3200 Revenue - Government Gr 5. Buildings 67000 670001 ash Your answer is partially correct. Try again Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entry in part (a). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit 1. Buildings - Structur 65350 Land 18832 uipmen 6518 No Entry No Entry 2. Interest Pavable 676 Cash 676 3. Purchase Discounts 09 ffice Equipmen 09 4 an 3200 Revenue - Government Gr 3200 5. TGain 4000 uildings 4000 Question Attempts: 1 of 3 used