Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June 30, 2023 Assets Cash $ 83,250 Machinery $ 624,750 Less: Accumulated depreciation 155,000 469,750 Total assets $ 553,000 Liabilities Accounts payable $ 157,900 Equity Jim Lui $ 78,100 Kent Montavo, capital 202,700 Dave Johnson, capital 114,300

Premium Pool and Spa Balance Sheet June 30, 2023Assets Cash $83,250 Machinery$624,750 Less: Accumulated depreciation 155,000 469,750 Total assets $553,000 Liabilities Accounts payable $157,900 Equity Jim Lui$78,100 Kent Montavo, capital 202,700 Dave Johnson, capital 114,300 Total equity 395,100 Total liabilities and equity $553,000