Metlock Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $896,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $256,000 $192,000 Buildings 320,000 448,000 Equipment 384,000 384,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 192,000 Buildings 320,000 Equipment 384,000 Cash 896,000 2. Bonita Enterprises purchased store equipment by making a $2,560 cash down payment and signing a 1-year, $29,440, 10% note payable. The purchase was recorded as follows. Equipment 34,944 Cash 2,560 Notes Payable 29,440 Interest Payable 2,944 3. Windsor Company purchased office equipment for $20,800, 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: Equipment 20,800 Cash 20,384 Purchase Discounts 416 4. Sheridan Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $34,560. The company made no entry to record the land because it had no cost basis. 5. Skysong Company built a warehouse for $768,000. It could have purchased the building for $947,200. The controller made the following entry. Buildings 947,200 Cash 768,000 Profit on Construction 179,200