Techy Corporation, a calendar- year company, manufactures innovative technological equipment. Techy began experiencing extensive financial difficulties in the current fiscal year due to the entrance of several competitors into the industry. On December 31, Techy€™s Board of Directors approved a plan for liquidation. The board has the authority to make this decision and there are no other parties that could block the plan. The balance sheet for Techy is on the next page followed by additional information. Using the codification as a guide, prepare a statement of net assets in liquidation for Techy Corporation for December 31 of the current year. Provide a discussion for each additional item of information that explains any necessary adjustments, or why an adjustment is not necessary.

1. Techy has a backorder on one of its products that it plans on fulfilling for 100 units at a selling price of $ 1,500 per unit. Techy expects to incur payroll costs of $ 45,000 related to this backorder.
2. Techy€™s investments and trading securities are all investments in entities that are traded in highly liquid markets. Techy typically incurs brokerage fees of 1% to trade these securities.
3. Techy has discussed selling its accounts receivable to another party. The potential buyer has indicated that it will purchase the receivables at a 10% discount. Techy does not anticipate any significant costs to this transaction.
4. Techy plans on selling its remaining merchandise inventory to a competitor. The competitor will purchase the inventory at Techys cost.
5. Techy does not anticipate that it will have the ability to sell any of its other current assets, which are mostly prepaid items.
6. While the fair value of the property, plant, and equipment is close to $ 2 million, Techy management does not believe that it will be able to receive this much from property due to the quickness with which it will need to be disposed. Management estimates that the property, plant, and equipment will sell for $ 1.5 million. They anticipate costs associated with the disposal of 6% of consideration received.
7. Techy anticipates that it will receive special terms from the bank that holds its note and will most likely only need to repay 80% of the balance. It is likely that the other liabilities of the firm will be paid off as originally scheduled.
8. Techy holds several patents that are not reported on its balance sheet. Management expects to sell these patents for $ 550,000. They anticipate incurring costs of disposal of $ 27,000.

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Tochy Corporation As of December 31 S 95.00D Trading Securities at fair value Accounts Receivable- net Other Current Assets Total CurrentAssets Property, Plant, and Equipment Total Property, Plant, and Equipment net $1,294,600 Accounts Payable Current Portion of Long-term Debt Accrued Liabilities Noncurrent Liabilities: Notes Payable Bonds Payable S 320,000 570,000 890,000 S 970.300 Total Noncurent Liabilities Total Liabilities Stockholders' Equity Common Stock - at par Additional Paid-in Capital Accumulated other Comprehensive Income Retained Eamings 140,000 275,000 35,000 343,800 793,900 $1,764,100 Total Stockholders' Equity Total Liabilities and Stockholders' Equity