Liquidation schedule-one negative capital account with no capital contribution The ABC partnership reports the following condensed balance sheet: Cash $126,250 Liabilities $200,000 Noncash assets 318,750 Partner A, capital 112,500 Partner B, capital 112,500 Partner C, capital 20,000 Total assets $445,000 Total liabilities and partner capital $445,000 The partners wish to liquidate the partnership. The noncash assets are sold for $250,000 with the loss distributed to the partners in the ratio of 30%/30%/40% to partner A, B, and C, respectively. The liabilities are paid in full. Assume that any partners with a negative balance in their respective Capital Accounts are insolvent and, therefore, do not make any capital contribution to the partnership (i.e., remaining partners must absorb the negative Capital Account according to their profit sharing formula). Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership -----Capital Accounts----- Cash cash Noncash Assets Noncash asas sabino Liabilities A Capital account, prior to liquidation $ Sale of noncash assets s _ $ Allocation of deficit Payment of creditors Distribution to partners Post-liquidation balances