On March $1,$ Farmworth Company is entering liquidation. The book value of its assets total $$400,000,$ including $$10,000$ in cash, and the book value of its liabilities total $$360,000.$ Additional information is as follows:$1.$ Expected proceeds from reported assets other than cash are:$-$ Receivables, $$30,000-$ Inventory, $$70,000-$ Plant and equipment, $$175\mathrm{.}0002.$ Expected costs of liquidating assets are $$25,000.$Requireda. Calculate the cumulative effect of the adjustment to Farmworth's net assets due to adoption of the liquidation basis of accounting.Use a negative sign with your answer if the cumulative effect reduces net assets.b$.$ Prepare a statement of net assets in liquidation as of March $1$Use a negative sign with your net assets answer, if appropriate.