2. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 80,000 Accounts receivable 240,000 Inventory 480,000 Equipment 1,200,000 Total 2,000,000 Accounts payable 120,000 Payable to B 80,000 A, Capital (20%) 400,000 B, Capital (30%) 600,000 C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: P40,000 was collected on accounts receivable; the balance is uncollectible. P20,000 was received for the entire inventory. The equipment was sold for P200,000. P8,000 liquidation expenses were paid. P108,000 was paid to outside creditors, after offset of a P12,000 credit memorandum received on January 2, 20x1. All of the partners are personally solvent