tent Ch 10: Acquisition and Disposition of Property.... NWP Assessment Question 6 of 6 View Policies Current Attempt in Progress Plant acquisitions for selected companies are as follows. 1. Pharoah industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co, for slump- sum price of $910,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $260,000 $195,000 Buildings 325,000 455.000 Equipment 390,000 390,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made Land Buildings Equipment Cash 195,000 325.000 390,000 910.000 2 Novak Enterprises purchased store equipment by making a $2,600 cash down payment and signing a 1-year. $29.900, 10% note payable. The purchase was recorded as follows. 35,490 Equipment Cash Notes Payable Interest Payable 2,600 29,900 2.990 3. Splish Company purchased office equipment for $19.200, terms 2/10, 1/30. Because the company intended to take the discount, it made no entry untit lt paid for the acquisition. The entry was Equipment 19.200 Cash 18,816 Purchase Discounts 384 4. Blossom Inc. recently received at zero cost and from the Village of Cardassia as an inducement to locate its business in the village. The appraised value of the land is $35.100. The company made no entry to record the land because it had no cost basis. 5. Blue Company built a warehouse for $780.000. It could have purchased the building for $962.000. The controller made the following entry. 962,000 Buildings Cash Pronton Construction 780,000 182,000 Prepare the entry that should have been made at the date of each acquisition (Round intermediate calculations to 5 decimal palces, e.g. 0.56487 and final answers to o decimal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Debit Credit No. Account Titles and Explanation 1. 2. 3. 4