Practice Problem 3 (25 minutes) John, Richard, and Ria have carried on a partnership for the last 20 years. The terms of the partnership are as follows: Each partner receives an annual salary of $45,000. Partners receive interest on their year-end capital balances, prior to the income allocation, of 6% per year. Residual profits are shared 3:3:4 for John, Richard, and Ria, respectively. For the year ended December 31, 2020, the partnership had a profit of $360,000, without considering partner salaries and interest on year-end capital balances. Prior to the allocation of profit for 2020, the partnership had the following trial balance: Cash Inventory Land Accounts payable Capital, John Capital, Richard Capital, Ria Income summary $155,000 $75,000 $480,000 $30,000 $80,000 $145,000 $95,000 $360,000 Required: a) Prepare the journal entry for the income allocation in 2020 (no journal entry is required for the salary drawings). b) After allocating the 2020 income, the partners decide to liquidate the partnership. The inventory and land are sold for $40,000 and $600,000, respectively. Determine the payout for each partner and prepare the required journal entries to liquidate the partnership