Practice Exercise 10-2 Plant acquisitions for selected companies are as follows. 1. Blue Spruce Corporation purchased a company car by making a $3,420 cash down payment and signing a 1-year, $15,200, 10% note payable. The purchase was recorded as follows. Automobiles 20,140 3,420 Cash 15,200 Notes Payable Interest Payable 1,520 2. As an inducement to locate its new branch office in the city of Greenwood Acres, Crane Co. received land and a building from the city at no cost. The appraised value of the land was $38,000. The appraised value of the building was $133,000. Since it paid nothing for the land and building, Crane Co. made no journal entry to record the transaction. 3. Coronado Corporation purchased warehouse shelving for $76,000, 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 76,000 Cash 75,240 Purchase Discounts 760 4. Sheridan Company built a piece of equipment for its factory. The cost of constructing the equipment was $121,600. Sheridan could have purchased the equipment for $144,400. The controller made the following entry. 144,400 Equipment Cash, Materials, etc. 121,600 Profir on Construction 22,800 5. Larkspur Inc. acquired land, buildings, and equipment from Sale Corp., for a lump-sum price of $760,000. The book values of the assets on Sale's 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