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The ABC partnership reports the following condensed balance sheet: Cash...

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Accounting

The ABC partnership reports the following condensed balance sheet:

Cash

$2,020,000

Liabilities $1,800,000

Noncash assets

3,670,000

Partner A, capital

1,750,500

Partner B, capital 1,750,500

Partner C, capital

389,000

Total assets

$5,690,000

Total liabilities and partner capital

$5,690,000

The partners wish to liquidate the partnership. The noncash assets are sold for $2,500,000 with the loss distributed to the partners in the ratio of 30%/30%/40% to partner A, B, and C, respectively. The liabilities are paid in full. Partners make any capital contribution that is necessary to offset a negative balance in their respective Capital Accounts.

Required: Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners.

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