Option #2: Partnership Transactions

Partners in the ABCD Partnership decided to dissolve their partnership. On that date, the partners had the following pre-liquidation capital balances:

Partner A	$28,000
Partner B	41,000
Partner C	18,000
Partner D	12,000

Liabilities at the date of dissolution total $100,000, and noncash assets equal $105,000. During the first month of liquidation, assets having a book value of $55,000 were sold for $31,000. During the second month, assets having a book value of $32,000, were sold for $28,000. During the third month, the remaining unsold assets were determined to be worthless. The partners receive the maximum allowable payment at the end of each month.

Submission Requirements:

Part 1: Using the ACT470_Mod08-Portfolio_Option02.xls Download ACT470_Mod08-Portfolio_Option02.xlsExcel spreadsheet, prepare an installment liquidation schedule along with supporting safe payment schedules.