On August 1, 2020, Equitech Company is entering liquidation. Its balance sheet, prepared using GAAP for a going concern, is as follows:

Cash	$ 10,000	Accounts payable	$ 350,000
Accounts receivable	125,000	Loans payable	1,000,000
Inventories	250,000	Total liabilities	1,350,000
Property & equipment, net	1,500,000
Intangible assets, net	100,000	Equity	635,000
Total assets	$1,985,000	Total liabilities and equity	$1,985,000

Equitech adopts the liquidation basis of accounting as of August 1, 2020. The following information is available concerning valuations: 1. Expected proceeds from liquidation of reported assets, other than cash: Accounts receivable, $100,000 Inventories, $200,000 Property and equipment, $900,000 Intangible assets, $0 2. Expected direct costs of liquidating reported assets: Accounts receivable, $2,000 Inventories, $3,000 Property and equipment, $15,000 3. Expected compensation to be paid during the liquidation period is $40,000. 4. The company has outstanding customer orders that it plans to fulfill during the liquidation period. Estimated revenues on these orders are $50,000, and estimated cash costs of fulfilling the orders are $34,000. During the three-month period ending October 31, 2020, Equitech collected accounts receivable of $45,000, sold inventory for $150,000 and property for $50,000, paid liquidation costs of $6,000, and paid compensation of $30,000. Net cash collected from customer orders totaled $9,000. Equitech paid the following reported liabilities: $60,000 accounts payable and $163,000 loans payable. The following information is available concerning estimated valuations on October 31, 2020: 1. Expected proceeds from liquidation of remaining assets, other than cash: Accounts receivable, $60,000 Inventories, $40,000 Property and equipment, $700,000 2. Expected costs of liquidating remaining assets: Accounts receivable, $200 Inventories, $100 Property and equipment, $14,700 3. Compensation to be paid is $12,000. 4. Estimated revenues on orders to be fulfilled are $20,000, and estimated cash costs of fulfilling these orders are $15,000. Required a. Prepare a statement of changes in net assets in liquidation for the three months ending October 31, 2020. b. Prepare a statement of net assets in liquidation as of October 31, 2020.