On May $1,2020,$ Evergreen Company is entering liquidation. Its$$balance sheet, prepared using GAAP for a going concern, is as follows:

Cash$$30,000$Accounts payable$$245,000$Accounts receivable$140,000$Loans payable$650,000$Inventories$200,000$Equity$445,000$Property and equipment, net$850,000$Intangible assets, net$120,000$Total assets$$1,340,000$Total liabilities and equity$$1,340,000$

The following information is available concerning valuations at May $1,2020$:

$1.$ Expected proceeds from liquidation of reported assets, other than cash:

Accounts receivable, $$120,000$

Inventories, $$170,000$

Property and equipment, $$600,000$

Intangible assets, $$25,000$

$2.$ Expected direct costs of liquidating reported assets:

Accounts receivable, $$1,000$

Inventories, $$2,500$

Property and equipment, $$10,000$

Intangible assets, $$5,000$

$3.$ Expected compensation to be paid during the liquidation period is $$35,000.$

$4.$ The company has outstanding customer orders that it plans to fulfill during the liquidation period.$$Estimated revenues on these orders are $$62,000,$ and estimated cash costs of fulfilling the orders are$$$$42,000.$

Evergreen$$s reporting period ends June $30,2020.$ During the two$-$month period May $1,2020$ to June $30,2020,$ Evergreen collected accounts receivable of $$25,000,$ sold property for $$100,000,$ paid liquidation costs$$of $$7,000,$ and paid compensation of $$20,000.$ Net cash collected from customer orders totaled $$5,000.$ Evergreen paid the following reported liabilities: $$25,000$ accounts payable and $$95,000$ loans payable.$$The following information is available concerning estimated valuations on June $30,2020$:

$1.$ Expected proceeds from liquidation of remaining assets, other than cash:

Accounts receivable, $$80,000$

Inventories, $$172,000$

Property and equipment, $$505,000$

Intangible assets, $$23,000$

$2.$ Expected costs of liquidating remaining assets:

Accounts receivable, $$600$

Inventories, $$2,300$

Property and equipment, $$4,900$

Intangible assets, $$3,800$

$3.$ Compensation to be paid is $$13,600.$

$4.$ Estimated revenues on orders to be fulfilled are $$50,000,$ and estimated cash costs of fulfilling these$$orders are $$31,000.$

Required

a$.$ Prepare a statement of changes in net assets in liquidation for the two months ending June $30,2020.$