Question 21 Not yet and Marked out of 40.00 Plaquestion Stefano, Massimo, and Campo who are partners in the SMC Company share income and loss in a 2:2:1 ratio. Due to some severe economic downturn, they plan to liquidate their partnership. At liquidation date, their balance sheet appears as follows. Instructions: Prepare journal entries for (a) the sale of land and equipment for $525,000 (b) the allocation of the gain or loss (c) the payment of the liabilities (d) the distribution of cash to the individual partners. (If any partner has a capital deficiency, assume that the partner is unable to make up the capital deficiency.) Cash SMC Company Balance Sheet December 31, 2020 Liabilities and Equity Accounts Payable Stefano, Capital Massimo, Capital Campo, Capital Total liabilities and equity Assets $300,000 300,000 525,000 $332,250 396,000 Equipment Land 351,750 45,000 $1,125,000 Total assets $1,125,000