The partnership of Seymour, Packard, & Malone has experienced operating losses for three consecutive years. The partnerswho have shared profits and losses in the ratio of Seymour, 15%; Packard, 60%; and Malone, 25%are liquidating the business. They ask you to analyze the effects of liquidation. They present the following condensed partnership balance sheet at December 31, 2018:

1. Assume the non-cash assets are sold for $50,000.
2. Prepare the liquidation schedule.
3. Journalize the sale of the non- cash assets.
4. Journalize the gain or loss on sale.
5. How much cash will Malone receive, if any ?