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Liquidation of a Partnership (10 points) Appalachian Trail Partnership at December 31 has cash $40,000, noncash assets $200,000, liabilities $110,000, and the following capital balances: Hoffman $90,000 and Mena $40,000. The firm is liquidated, and $220,000 in cash is received for the noncash assets. Hoffman and Mena income ratios are 60% and 40%, respectively. Instructions What will happen to the $220,000 received for the non-cash assets with a book value of only $200,000 ? What if the non-cash assets had been sold for $150,000 instead? Bonus: (+ up to 5 points) Using the above information for Appalachian Partnership, assume that noncash assets were sold instead for $50,000, causing Mena to have a $20,000 capital deficit. What are the 2 options to handle this deficit in the liquidation? (A new distribution schedule is not necessary, just describe the options avallable to the partners.)