The partnership of Frick, Wilson, and Clarke 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

$$60,000$

Liabilities

$$40,000$

Noncash assets

$219,000$

Frick, capital $(60\%)$

$129,000$

Wilson, capital $(20\%)$

$35,000$

$$

Clarke, capital $(20\%)$

$75,000$

Total assets

$$279,000$

Total liabilities and capital

$$279,000$

Part A

Prepare a predistribution plan for this partnership.

Part B

The following transactions occur in liquidating this business:

Distributed safe payments of cash immediately to the partners. Liquidation expenses of $$8,000$ are estimated as a basis for this computation.

Sold noncash assets with a book value of $$94,000$ for $$60,000.$ Distribution to Fricke $$28,800,$ Wilson $$1,600,$ Clarke $$29,600$

Paid all liabilities.

Distributed safe payments of cash again.

Sold remaining noncash assets for $$51,000.$

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

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

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

Part C

Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.