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Exercise 10-6 Plant acquisitions for selected companies are as follows. 1. Metlock Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $910,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values raisal Values $260,000 $195,000 Land 325,000 Buildings 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. 195,000 Land 325,000 Buildings Equipment 390,000 Cash 910,000 2. Bonita 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 2,600 Notes Payable 29,900 2,990 Interest Payable 3. Windsor Company purchased office equipment for $19,200, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was 19,200 Equipment Cash 18,816 Purchase Discounts 384