part a). The machinery is sold for $494,000. part b). The machinery is sold for $381,000. part c). The machinery is sold for $210,000 and any partner with resulting deficits can and do pay in the amount of their deficits. part d ). The machinery is sold for $193,000,and the partners have no assets other than those invested in the business.

part e ). prepare the entry to record the final distribution of cash assuming the machinery is sold for $494,000.

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: $ 68,250 $594,750 140,000 454,750 $523,000 Premium Pool and Spa Balance Sheet June 30, 2020 Assets Cash Machinery Less: Accumulated depreciation Total assets Liabilities Accounts payable Equity Jim Lui Kent Montavo, capital Dave Johnson, capital Total equity Total liabilities and equity $132,400 $ 76,600 201,200 112,800 390,600 $523,000 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 $494,000 (Negative answers should be indicated by a minus sign.)