Instructions: Part 1 - Under the assumption that the equipment is sold and the cash is distributed to the proper parties on October 15, 2011, Complete the schedule provided below. Part 2 - Show the sale, the gain or loss allocation, and the distribution of the cash in each of the following unrelated cases: (a) The equipment is sold for $135,000. (b) The equipment is sold for $85,050. (c) The equipment is sold for $36,300 and any partners with resulting deficits can and do pay in the amount of their deficits. Part 3 - Prepare the journal entries required to record the liquidation under the three cases. Show all working.

Problem 14-7B Poppy, Sweetbean, and Olive, who have always shared incomes and losses in a 3:l:l ratio, plan to liquidate their partnershlp. just prior to the liquidation their balance sheet appeared as follows: Lquidation of a partnership LOS Poppy, Sweetbean, and Ollve Balance Sheet October 15, 2011 Assets Liabliitles 5 28,350 Cash Equipment (net 3 6750 Accounts payable 118800 Equlty 1125550 Emie Poppy captal $45,600 30,000 Total assots Lynn Swootbean, capital Total equity Total Rabilities and equity 97,200 $125,550 Required Part 1 Under the assumption that the equipment is sold and the cash is distributed to the proper partles on October 15, 2011, complate the schedula provided balow Enle Lynn Ned Equipment Accounts Poppy, Swootbean, Olve Cash (net) Payable Capital Capital Capita Account balances October 15, 2011 Show the sale, the gain or loss allocation, and the distribution of the cash in each of the following unrelated cases: a. The equipment is sold for $135,000 b. The equipment is sold for 385,050. c. The equipment is sold for $36 300, and any partners with resuting deficits can and do pay in Check figures a. Cash to 0live 324,840 b. Cash to Olve 114,850 c. Cash to Oive: $5,100 d Cash to Ofile 10 the amount of their daficits