A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are

Bell, capital$ 98,500Hardy, capital84,000Dennard, capital15,000Suddath, capital99,000

Bells creditors have filed a $40,000 claim against the partnerships assets. The partnership currently holds assets of $490,000 and liabilities of $193,500. An independent appraiser indicates that the assets can be sold for $285,000.

Required:

Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets.

Note: Amounts to be deducted should be entered with a minus sign.