LO 6 P14.12 Partnership Liquidation-Safe Payments Partners Dodge, Edsel, Ford and Harley share inco in a ratio of 8:5:4:3, respectively. On January 1, 2017, they decide to terminate operations and begin process of liquidation. The partnership's trial balance on that date shows the following: Debit Credit Cash Loan receivable-Edsel . . . Equipment... . 87,000 25,000 .55,000 30,000 112,000 Truck Bank loan payable $ 75,000 48,000 80,000 71,000 42,000 53,000 9,000 $378,000 . . Accounts payable.. .. Capital Harley Totals .. To maximize proceeds, assets were sold over a three-month period. At the end of each month, available cash, less an amount retained to cover estimated future expenses, was distributed to the par liquidation proceeded as follows: January 2017: 1. Returned inventory costing $10,000 to the supplier, who granted a credit of $8,500 against the open accounts payable. 2. Collected $45,000 of the accounts receivable; collection of the remainder is uncertain. 3. Sold the remaining inventory to a competitor for $30,000. 4. Sold the equipment for $80,000. 5. Paid liquidation expenses of $5,500. 6. Paid the bank loan and the remaining accounts payable in full. 7. Retained $20,000 of cash for potential future obligations and liquidation expenses. February 2017: 1. Collected $15,000 of the accounts receivable, and the remainder is determined to be uncollectibie 2. Transferred the truck to Dodge in exchange for a $30,000 reduction in the partnership's loan obliga tion to Dodge. Chapter 14Partnership Accounting and Re 3. Paid liquidation expenses of $3.000 4. Retained S10,000 of cash for potential future obligations and liquidation expenses. March 2017 1. Sold the land for $125,000. 2. Paid liquidation expenses of $8,000 3. Distributed all remaining cash Required Prepare a schedule to compute the safe installment payments to the partners at the end of January, Febru- ary, and March 2017