The post-closing trial balances of two proprietorships on January 1, 2020, are presented below.

		Sorensen Company				Lucas Company
		Dr.		Cr.		Dr.		Cr.
Cash		$14,000				$11,800
Accounts receivable		17,000				25,000
Allowance for doubtful accounts				$2,900				$4,300
Inventory		26,000				18,000
Equipment		44,000				28,000
Accumulated depreciationequipment				23,500				10,800
Notes payable				17,600				14,700
Accounts payable				21,600				30,400
Sorensen, capital				35,400
Lucas, capital								22,600
		$101,000		$101,000		$82,800		$82,800

Sorensen and Lucas decide to form a partnership, Crane Company, with the following agreed upon valuations for noncash assets.

		Sorensen Company		Lucas Company
Accounts receivable		$17,000		$25,000
Allowance for doubtful accounts		4,400		3,900
Inventory		27,400		19,600
Equipment		24,500		14,700

All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships