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1. Plant acquisitions for selected companies are as follows: Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $741,000. At the time of purchase. Torres's assets had the following book and appraisal values: Book Value Appraisal Value Land $197.000 $142.000 Buildings 247.000 346,000 Equipment 352,000 352,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land Buildings Equipment Cash 142,000 247,000 352,000 741,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the root in the next five years. Torres Co. indicated that, on initial construction of the building the roof amounted to 19% of the cost of the building, Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 15% of the value of the building purchase 2. 3 Hari Enterprises purchased equipment by making a $1,500 cash down payment and signing a $26,700, one year, 10% note payable. The purchase was recorded as follows: Equipment 30.870 Cash 1,500 Notes Payable 26,700 Interest Payable 2,670 Kim Company purchased equipment for $28.000, terms 4/10, 1/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was Equipment 28,000 Cash 26,880 Purchase Discounts 1.120 Kaker inc. recently received and at zero cost from the village of Chester as an inducement to locate its business in the village. The band's appraised value was 530 200. The company made no entry to record the land because it had no cost basis. 4. because it had no cost 5. Zimmerman Company built a warehouse for $629.000. It could have contracted out and purchased the building for $750,000. The controller made the following entry: 750,000 Buildings Cash Sales Revenue 629.000 121.000 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 for the amounts. Do not round intermediate calculations. Round final answers to decimal places, eg,5,275.) No. Account Titles and Explanation Debit Credit 1. > 2. > >> 3. 4. > > 5 >

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