After 25 years of operations, the Starke, Lannister, and Targaryen partnership has decided to liquidate.

At that time, 1/1/20x2, the partnership balance is as follows:

Starke, Lannister, and Targaryen, Partners Balance Sheet As of 1/1/20x2
Assets		Liabilities and Partners Capital
Cash	$90,000	Liabilities	$60,000
Noncash assets	300,000	Starke, Capital	80,000
Total assets	$390,000	Lannister, Capital	110,000
		Targaryen, Capital	140,000
			$390,000

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

Starke, Capital	30%
Lannister, Capital	40%
Targaryen, Capital	30%

The partnership estimates liquidation expenses of $8,000.

Required

1. The partnership disposes of $150,000 of the noncash assets for $120,000, give the journal entry recording disposal of those noncash assets.
2. Prepare a Statement of Liquidation for the partnership, given the following:
   1. Disposes of remaining noncash assets for $110,000
   2. Settles all outstanding liabilities
   3. Settles partnership expenses.
3. Briefly explain the:
   1. Purpose of a predistribution plan,
   2. Term safe balance (also called safe payment), and
   3. Assumptions an accountant must consider when determining a partnerships safe balance.
4. For the Starke, Lannister, & Targaryen partnership, compute the total amount of cash available for safe payment before disposal of any noncash assets. (No allocation to the individual partners is required)