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 $19,000. Liabilities Cash Noncash assets $125,000 260,000 $ 60,000 Arch, capital (40%) 125,000 Bibb, capital (20%) Dao, capital (40%) 62,500 137,500 Total assets $385,000 Total liabilities and capital $385,000 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 Cash Date of Termination Noncash Liabilities Assets Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40% Beginning balances $ 125,000 $ 260,000 $ 60,000 $ 125,000 $ 62,500 $ 137,500 Pay liabilities (60,000) (60,000) Max. liquidation expenses (19,000) Max. loss-noncash assets (260,000) Initial safe payments $ 46,000 $ 0 $ 0 $ 125,000 $ 62,500 $ 137,500