The following partnership is being liquidated beginning on July 13, 2009:

Cash.

. . . . $ 36,000 Liabilities. LO6

. . . . $50,000 Noncash assets.

.... 174,000 Able,loan.

_ 10,000 Able, capital (20%).

40,000 Moon, capital (30%).

_ 60,000 Yerkl, capital (50%).

50,000

a. Liquidation expenses are estimated to be $12,000. Prepare a predistribution schedule to guide the distribution of cash.

b. Assume that assets costing $28,000 are sold for $40,000. How is the available cash to be divided?