1. The partnership of Hanly, Ide, and Jen was dissolved. By August 1, 2006, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on August 1, 2006 (with partner residual profit and loss sharing percentages) was as follows:

	Cash	$	50,000		Hanly, capital(30%)			$		4,000
					Ide, capital(20%)					(60,000)
					Jen, capital(50%)					106,000
	Total assets	$	50,000		Total equity			$		50,000
	The value of partners' personal assets and liabilities on August 1, 2006 were as follows:
					Hanly		Ide				Jen
	Personal assets			$	74,000	$	120,000		$		56,000
	Personal liabilities				72,000		80,000				60,000
Required:

Prepare the final statement of partnership liquidation.

2. Identify 3 advantages and 3 disadvantages of a partnership.