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	$	19,000	Liabilities	$	71,000
Accounts receivable		86,000	Rodgers, loan		39,000
Inventory		105,000	Wingler, capital (30%)		126,000
Land		87,000	Norris, capital (10%)		92,000
Building and equipment (net)		170,000	Rodgers, capital (20%)		76,000
			Guthrie, capital (40%)		63,000
Total assets	$	467,000	Total liabilities and capital	$	467,000

When the liquidation commenced, liquidation expenses of $14,000 were anticipated as being necessary to dispose of all property.

Part A

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 80 percent of the total accounts receivable with the rest judged to be uncollectible.
2. Sold the land, building, and equipment for $152,000.
3. Distributed safe payments of cash.
4. Learned that Guthrie, who has become personally insolvent, will make no further contributions.
5. Paid all liabilities.
6. Sold all inventory for $78,000.
7. Distributed safe payments of cash again.
8. Paid actual liquidation expenses of $11,000 only.
9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.