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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

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 $15,000.

Cash $ 140,000 Liabilities $ 70,000
Noncash assets 280,000 Arch, capital (40%) 130,000
Bibb, capital (20%) 65,000
Dao, capital (40%) 155,000
Total assets $ 420,000 Total liabilities and capital $ 420,000

Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.)

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ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Arch, Capital Cash Assets Liabilities 40% Bibb, Capital 20% Dao, Capital 40% Beginning balances Pay liabilities Max. liquidation expenses Max. loss - noncash assets Initial safe payments

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