Final answer:
Wildhorse Industries Inc.'s plant acquisition from the bankrupt Torres Co. for $952,000 is a lump-sum purchase of multiple assets. Such transactions require purchase price allocation for accounting purposes, similar to when Kinder Morgan sold assets to Tallgrass Energy for $1.8 billion.
Step-by-step explanation:
When Wildhorse Industries Inc. acquired assets from Torres Co., they made what is known as a lump-sum purchase. This type of acquisition often occurs when a company, like Torres Co., goes bankrupt and sells its assets in bulk to another entity. In such a transaction, the purchasing company - in this case, Wildhorse Industries Inc. - buys a bundle of assets, which may include land, buildings, and equipment, for a single combined price of $952,000. This approach is different from purchasing each asset individually, where each would have a separate price tag. An example of a large-scale asset sale is the acquisition reported by both The New York Times and The Middle Market, where Kind Morgan agreed to sell assets to Tallgrass Energy for $1.8 billion. It's important to note that in such cases, especially when it involves larger sums and multiple types of assets, companies often have to allocate the purchase price amongst the various assets acquired. This requires appraisal values and might have accounting and tax implications.