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	$	64,000		Liabilities	$	38,000
Noncash assets		261,000		Frick, capital (60%)		156,000
				Wilson, capital (20%)		42,000
				Clarke, capital (20%)		89,000
Total assets	$	325,000		Total liabilities and capital	$	325,000

Part B

The following transactions occur in liquidating this business:

1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation.
2. Sold noncash assets with a book value of $108,000 for $64,000.
3. Paid all liabilities.
4. Distributed cash based on safe capital balances again.
5. Sold remaining noncash assets for $58,000.
6. Paid actual liquidation expenses of $6,000 only.
7. Distributed remaining cash to the partners and closed the financial records of the business permanently.

WHAT I HAVE FILLED OUT IS CORRECT.

FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Frick, Wilson, Clarke, Noncash Cash Liabilities Capital Capital Capital Assets (60%) (20%) (20%) Beginning balances $ 64,000 $ 261,000 $ 38,000 $ 156,000 $ 42,000 $ 89,000 Distribution 18,000 0 0 0 0 18,000 Updated balances $ 46,000 $ 261,000 $ 38,000 $ 156,000 $ 42,000 $ 71,000 Noncash assets sold 64,000 108,000 26,400 8,800 8,8001 Updated balances $ 110,000 $ 153,000 $ 38,000 $ 129,600 $ 33,200 $ 62,200 Liabilities paid 38,000 0 38,000 0 0 0 Updated balances $ 72,000 $ 153,000 $ 0 $ 129,600 $ 33,200 $ 62,200 First (remainder of first distribution) 0 0 0 0 Next 0 0 30,000 0 Next 0 Updated balances $ 72,000 $ 153,000 $ 0 $ 99,600 $ 33,200 $ 62,200 Noncash assets sold 0 Updated balances $ 72,000 $ 153,000 $ 0 $ 99,600 $ 33,200 $ 62,200 Liquidation expenses paid 6,000 0 0 3,600 1,200 1,200 Updated balances $ 66,000 $ 153,000 $ 0 $ 96,000 $ 32,000 $ 61,000 Final distribution based on ending capital account balances Ending balance $ 66,000 $ 153,000 $ 0 $ 96,000 32,000 $ 61,000 0