The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: CDG PARTNERSHIP Balance Sheet At December 1, 20X6 Assets Cash $ 32,500 Accounts Receivable (net) 90,000 Inventories 115,000 Property, Plant and Equipment (net) 330,000 Total Assets $ 567,500 Liabilities and Capital Liabilities: Accounts Payable $ 292,500 Capital: Carlos, Capital $ 135,000 Dan, Capital 65,000 Gail, Capital 75,000 Total Capital 275,000 Total Liabilities and Capital $ 567,500 Additional Information Each partners personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Carlos Dan Gail Personal assets $ 265,000 $ 315,000 $ 365,000 Personal liabilities (237,500 ) ( 232,500 ) (343,900 ) Personal net worth $ 27,500 $ 82,500 $ 21,100 Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40. CDG sold all noncash assets on December 10, 20X6, for $273,500.

CDG PARTNERSHIP
Statement of Realization and Liquidation
Lump-sum Liquidation on December 10, 20X6
				Capital Balances
	Cash	Noncash Assets	Liabilities	Carlos	Dan	Gail
Preliquidation balances	$32,500selected answer correct	not attempted	$292,500selected answer correct	$135,000selected answer correct	$65,000selected answer correct	$75,000selected answer correct
Sale of assets and distribution of loss	273,500selected answer correct	not attempted	not attempted	not attempted	(104,600)selected answer correct	not attempted
	$306,000	$0	$292,500	$135,000	$(39,600)	$75,000
Cash contributed by Gail to extent of positive net worth	21,100selected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted
	$327,100	$0	$292,500	$135,000	$(39,600)	$75,000
Distribution of deficit of insolvent partner	not attempted	not attempted	not attempted	(2,833)selected answer correct	(5,667)selected answer correct	not attempted
	$327,100	$0	$292,500	$132,167	$(45,267)	$75,000
Contribution by Dan to remedy deficit	45,267selected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted
	$372,367	$0	$292,500	$132,167	$(45,267)	$75,000
Payment to creditors	(292,500)selected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted
	$79,867	$0	$292,500	$132,167	$(45,267)	$75,000
Payment to partner	(79,867)selected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted
Postliquidation balances	$0	$0	$292,500	$132,167	$(45,267)	$75,000