Problem 4 After 25 years of operations, the Starke, Lannister, and Targaryen partnership has decided to liquidate. At that time, 1/1/20x2, the partnership balance sheet is as follows: Assets Cash Noncash assets Starke, Lannister, and Targaryen, Partners Balance Sheet as of 12/31/20x1 Liabilities and Partners' Capital $80,000 Liabilities 205,000 Starke, Capital Lannister, Capital Targaryen, Capital $285,000 Total Liabilities and Capital $47,000 138,000 119,500 (19,500) $285.000 Total assets In accordance with the Articles of Partnership, the partners agreed to share profits and losses as follows: 30% Starke, Capital Lannister, Capital Targaryen, Capital 40% 30% The partnership estimates liquidation expenses of $10,000. Required A. Before beginning liquidation activities, the partnership agrees that Targaryen must eliminate her deficit balance. Assuming the noncash assets have zero value, what is the maximum amount Targaryen must contribute to the partnership to eliminate the deficit balance in her capital account? B. Assuming maximum losses, prepare a formal Statement of Liquidation for the partnership. C. Based on your schedule of liquidation, how much will be distributed to each partner upon full liquidation? Problem 4 After 25 years of operations, the Starke, Lannister, and Targaryen partnership has decided to liquidate. At that time, 1/1/20x2, the partnership balance sheet is as follows: Assets Cash Noncash assets Starke, Lannister, and Targaryen, Partners Balance Sheet as of 12/31/20x1 Liabilities and Partners' Capital $80,000 Liabilities 205,000 Starke, Capital Lannister, Capital Targaryen, Capital $285,000 Total Liabilities and Capital $47,000 138,000 119,500 (19,500) $285.000 Total assets In accordance with the Articles of Partnership, the partners agreed to share profits and losses as follows: 30% Starke, Capital Lannister, Capital Targaryen, Capital 40% 30% The partnership estimates liquidation expenses of $10,000. Required A. Before beginning liquidation activities, the partnership agrees that Targaryen must eliminate her deficit balance. Assuming the noncash assets have zero value, what is the maximum amount Targaryen must contribute to the partnership to eliminate the deficit balance in her capital account? B. Assuming maximum losses, prepare a formal Statement of Liquidation for the partnership. C. Based on your schedule of liquidation, how much will be distributed to each partner upon full liquidation