Sedgwick Company at December 31 has cash $24,000, noncash assets $105,000, liabilities $50,200, and the following capital balance : Floyd $43,200 and Dewitt $35,600. The firm is liquidated, and $117,000 in cash is received for the noncash assets. Floyd and Dewitt income rations are 60% and 40% respectively.

Sedgwick Company

Schedule of cash payment

Items cash + Noncash assets= liabilities + Floyd, Capital+ Dewitt, Capital

balance before liquidation $24,000 $105,000 $50,200 $43,200 $35,600

sales of noncash asssets and allocation gain --------- ------------------- ------------- ------------ ---------------------------

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pay liabilities ----------- ------------------------ ------------------------- ------------- --------------------------------

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