Allen Fraser was president of three corporations: Missouri Metals Corporation, Kansas Metals Corporation, and Iowa Metals Corporation. Each of the three corporations owned land and buildings acquired for approximately $500,000. An appraiser retained by Fraser in 20X1 estimated the current value of the land and buildings in each corporation at approximately $3,000,000. The appraisals were recorded in the accounts. A new corporation, called Mid-west Corporation, was then formed, and Fraser became its president. The new corporation purchased the assets of the three predecessor corporations, making payment in capital stock. The balance sheet of Midwest Corporation shows land and buildings “valued at cost” in the amount of $9,000,000, the carrying values to the vendor companies at the time of transfer to Midwest Corporation. Do you consider this treatment acceptable? Explain.