After 25 years of operations, the Dennison, Edwards, and Smith partnership has decided to liquidate. At that time, 1/1/20x2, the partnership balance sheet is as follows:

In accordance with the Articles of Partnership, the partners agreed to share profits and losses as follows:

Dennison, Capital	40%
Edwards, Capital	30%
Smith, Capital	30%

The partnership estimates liquidation expenses of $8,500.

Required

A) Before beginning liquidation activities, the partnership agrees that Smith must eliminate her deficit balance. Assuming the noncash assets have zero value, what is the maximum amount she must contribute to the partnership to eliminate the deficit balance in her capital account?

B) Based on the information above, prepare a schedule of safe payments for the partners.

C) Assuming the partnership receives $100,000 for noncash assets and they are ready to finalize its liquidation, prepare a formal Statement of Liquidation for the partnership, in good form.

\begin{tabular}{|l|r|l|r|} \hline \multicolumn{4}{|c|}{Dennison,Edwards,andSmithPartnersBalanceSheetasof1/1/202} \\ \hline \multicolumn{1}{|c|}{ Assets } & \multicolumn{1}{|c|}{ Liabilities and Partners' Capital } \\ \hline Cash & $125,000 & Liabilities & $80,000 \\ \hline Noncash assets & 200,000 & Dennison, Capital & 140,000 \\ \hline & & Edwards, Capital & 125,000 \\ \hline & & Smith, Capital & (20,000) \\ \hline Total assets & $325,000 & Total Liabilities \& Capital & $325,000 \\ \hline \end{tabular}