P12-6B The partnership of Parr, Johnston, & Rake has experienced operating losses for three consecutive years. The partners-who have shared profits and losses in the ratio of Sharon Parr 10%: Alicia Johnston, 30%; and Chet Rake. 60%-are considering the liquidation of the business. They ask you to analyze the effects of liquidation under various possibilities regard- ing the sale of the noncash assets. They present the following condensed partnership balance sheet at December 31, end of the current year: Cash Noncash assets.... Total assets.. $ 27.000 202.000 Liabilities Parr, capital... Johnston, capital $131.000 21.000 39.000 Rake, capital.... 38.000 $229.000 Total liabilities and capital... $229.000 Required 1. Prepare a summary of liquidation transactions (as illustrated in Exhibit 12-4) for each of the following situations:

a. The noncash assets are sold for $208,000.

b. The noncash assets are sold for $189,000. 2. Make the journal entries to record the liquidation transactions in requirement 1(b).