- 154 -
IRA recorded the receipt of the $44,413 payment received
from Essex in January as payables of $19,986 due to each of
Carlco and TMT and $4,441 due to BWK, Inc.29 On January 30,
1984, IRA issued checks in the appropriate amounts to each of the
corporations and recorded the payments as payment of the payables
owed to Carlco, TMT, and BWK, Inc. The remaining $88,825 from
Essex was also treated as distributed directly to Carlco, TMT,
and BWK, Inc., by reducing the additions to capital attributable
to IRA's contributions of cash made to the corporations during
the year.
In December 1984, IRA distributed its Essex partnership
interest in the ratio of 45 percent each to Carlco and TMT and 10
percent to BWK, Inc. IRA recorded the distribution of the Essex
partnership interest on its books as follows:
1984 beginning value $45,283
Less distribution of
investment as paid in capital (45,283)
Less distributions from Essex
05/08/84 (26,125)
07/06/84 (26,125)
10/04/84 (36,575)
Plus "distb exxex dist as pd in" 88,825
Investment end of year -0-
Carlco, TMT, and BWK, Inc. recorded the receipt of the Essex
partnership interest as follows (balance differences are due to
rounding):
29
The difference between total of $44,412 and $44,413 is due
to rounding of numbers.
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