5 8 Question 16 (3 points) Listen The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a architectural firm. Several partner recently had personal financial problems and decided to terminate operations and liquidate the business. The following balance sheet m i financial information on January 5 at the beginning of this process Land Building and Equipment) the 1 20% 10% $17,000 0.000 579,000 100,000 Rodgers Loan Wingler, Capital 25,000 141.000 57,000 Nonis Capital 100.000 191.000 Rodgers Capital $2,000 447,000 Gee, Capital Total liabilities and Capital 447,000 18,000 Jan 14 Collected 70% of the total accounts receivabe with the rest judged to be uncollectible Feb 23 said the land, building a Mar 1 Made sale capital diabut 21 24 1 Male le capital diagn Sep 26 Paidation expen 70% 180,000 55,000 15,000 In its predistribution plan, what is the amount of cash allocated to liabilities and estimated liquidation expenses in step 1? $97,000 The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a architectural firm. Several partners recently had personal financial problems and decided to terminate operations and liquidate the business. The following balance sheet summarizec its financial information on January 5 at the beginning of this process: Cash Accounts Receivable Inventory Land Building and Equipment (net) Total Assets $17,000 80,000 Liabilities Rodgers Loan Wingler, Capital 100,000 Norris, Capital $79,000 25,000 141,000 57,000 100,000 193.000 447,000 Rodgers Capital 62,000 Guthrie, Capital 40.000 Total Liabilities and Capital 447,000 The estimated liquidation expenses were 18,000 Profit and loss allocation ratio according to the provisions of partnership agreement: Wingler 40% Norris 20% 10% 30% Rodgers Guthrie The following transactions occurred during the liquidation: Jan. 14 Collected 70% of the total accounts receivalbe with the rest judged to be uncollectible Feb. 23 Sold the land, building and equipment for Mar. 1 Made safe capital distributions Mar.29 Learned that Guthrie became personally insolvent Apr. 3 Paid all liabilities Jun. 30 Sold all inventory for Jul. 1 Made safe capital distributions again Sep. 26 Paid liquidation expenses 70% 180,000 55,000 15,000 Nov. 4 Made final cash distrubtions to the partners based on the assumption that all partners except Guthrie are personally solvent. In its predistribution plan, what is the amount of cash allocated to liabilities and estimated liquidation expenses in step 1? $97,000 $65,000 $87,000