The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

Cash	$	41,000	Liabilities	$	66,000
Accounts receivable		108,000	Rodgers, loan		61,000
Inventory		127,000	Wingler, capital (30%)		159,000
Land		98,000	Norris, capital (10%)		114,000
Building and equipment (net)		181,000	Rodgers, capital (20%)		87,000
			Guthrie, capital (40%)		68,000
Total assets	$	555,000	Total liabilities and capital	$	555,000

When the liquidation commenced, liquidation expenses of $17,000 were anticipated as being necessary to dispose of all property.

Prepare a predistribution plan for this partnership.

Part B

The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:

1. Collected 85 percent of the total accounts receivable with the rest judged to be uncollectible.
2. Sold the land, building, and equipment for $163,000.
3. Made safe capital distributions.
4. Learned that Guthrie, who has become personally insolvent, will make no further contributions.
5. Paid all liabilities.
6. Sold all inventory for $84,000.
7. Made safe capital distributions again.
8. Paid actual liquidation expenses of $8,000 only.
9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.