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, 2020
Assets
Cash				$	77,250
Machinery	$	612,750
Less: Accumulated depreciation		149,000			463,750
Total assets				$	541,000
Liabilities
Accounts payable				$	147,700
Equity
Jim Lui	$	77,500
Kent Montavo, capital		202,100
Dave Johnson, capital		113,700
Total equity					393,300
Total liabilities and equity				$	541,000

Required: 1. Under the assumption that the machinery is sold and the cash is distributed to the proper parties on June 30, 2020, complete the schedule provided below. Show the sale, the gain or loss allocation, and the distribution of the cash in each of the following unrelated cases: a. The machinery is sold for $512,000. (Negative answers should be indicated by a minus sign.)

b. The machinery is sold for $399,000. (Negative answers should be indicated by a minus sign.)