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 $10,000.

Cash $ 130,000 Liabilities $ 70,000

Noncash assets 290,000 Arch, capital (40%) 130,000

Total Assets $420,000 Bibb, capital (20%) 65,000

Dao, capital (40%) 155,000

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.)

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