The partnership of Larson, Rojas, Spencer, and Tran has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent.

The balance sheet reported by this partnership at the time that the liquidation commenced follows.

The percentages indicate the allocation of profits and losses to each of the four partners.

Based on the information provided, prepare a predistribution plan for liquidating this partnership.

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Cash Accounts receivable.. Inventory..... Land and buildings. Equipment .... Total assets $28,250 44,000 39,000 23,000 104,000 $238,250 Liabilities.. Larson, capital (20%). Rojas, capital (30%).. Spencer, capital (20%) Tran, capital (30%).. Total liabilities and capital..... $ 47,000 15,000 60,000 75,000 41,250 $238,250