Question 4

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $16,000.

Cash	$120,000	Liabilities	$60,000
Noncash assets	250,000	Arch, capital (40%)	120,000
		Bibb, capital (20%)	60,000
		Dao, capital (40%)	130,000
Total assets	$370,000	Total liabilities and capital	$370,000

Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination.