The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent. The balance sheet reported by this partnership at the time that the liquidation commenced follows. The percentages indicate the allocation of profits and losses to each of the four partners. Cash Accounts receivable Inventory Land and buildings Equipment Total assets $ 28, 250 44,000 39,000 23,000 104,000 $ 238, 250 Liabilities Larson, capital (20%) Norris, capital (30%) Spencer, capital (20%) Harrison, capital (30%) Total liabilities and capital $ 47,000 15,000 60,000 75,000 41, 250 $ 238, 250 Based on the information provided, prepare a predistribution plan for liquidating this partnership. Loss Allocation Partner Balances Prepare the loss allocation table. Partner Maximum Loss Capital Balance Loss Allocation That Can Be Absorbed Schedule 1 Larson Norris Spencer Harrison Schedule 2 Larson Norris Spencer Harrison Schedule 3 Larson Norris Spencer Harrison Loss Allocation Partner Balances Prepare the table showing partner balances. Larson Norris Spencer Harrison Beginning balances Assumed loss Schedule 1 Step one balances Assumed loss Schedule 2 Step two balances Assumed loss Schedule 3 Step three balances