The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:

Cash $ $75,000$ Liabilities $ $40,000$

Noncash assets $309,000$ Bauer, capital $(60\%)189,000$

Ohtani, capital $(20\%)50,000$

Souza, capital $(20\%)105,000$

Total assets $ $384,000$ Total liabilities and capital $ $384,000$

Required:

Part B

The following transactions occur in liquidating this business:

$1.$ Distributed safe payments of cash immediately to the partners. Liquidation expenses of $$10,000$ are estimated as a basis for this computation.

$2.$ Sold noncash assets with a book value of $$124,000$ for $$75,000.$

$3.$ Paid all liabilities.

$4.$ Distributed safe payments of cash again.

$5.$ Sold remaining noncash assets for $$66,000.$

$6.$ Paid actual liquidation expenses of $$8,000$ only.

$7.$ Distributed remaining cash to the partners and closed the financial records of the business permanently.

Prepare a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners.