Trish Craig and Ted Smith have a bio-energy and consulting business and share profit and losses in a 3:1 ratio. They decide to liquidate their partnership on December 31, 2020, when the balance sheet shows the following:

Craig and Smith Consulting Balance Sheet December 31, 2020
Assets
Cash				$	92,500
Property, plant and equipment	$	517,500
Less: Accumulated depreciation		200,500			317,000
Total assets				$	409,500
Liabilities
Accounts payable				$	51,700
Equity
Trish Craig, capital	$	246,100
Ted Smith, capital		111,700
Total equity					357,800
Total liabilities and equity				$	409,500

Required: Prepare the entries on December 31, 2020, to record the liquidation under each of the following independent assumptions: a. Property, plant, and equipment are sold for $723,900.

View transaction list X 1 Record the sale of property, plant and equipment. 2 Record the allocation of gain/loss to equity. 3 Record the payment of liabilities. 4 Record the final distribution of cash. Credit Note : = journal entry has been entered Record entry Clear entry View general journal b. Property, plant, and equipment are sold for $141,300. View transaction list X > 1 Record the sale of property, plant and equipment. 2 Record the allocation of gain/loss to equity. 3 Record the payment of liabilities. 4 Record the final distribution of cash. Credit Note : journal entry has been entered Record entry Clear entry View general journal