[The following information applies to the questions displayed below.] The partnership of Garcia, Iglesias, and Kassablan...

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[The following information applies to the questions displayed below.] The partnership of Garcia, Iglesias, and Kassablan was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets Liabilities Garcia, loan $ 44,000 74,000 $ 184,000 44,000 64,000 Garcia, capital (25%) 120,000 180,000 Iglesias, capital (25%) 44,000 170,000 $532,000 Kassabian, capital (50%) 140,000 Total liabilities and capital $532,000 Required: Prepare a predistribution plan for this partnership. Garcia, Loan Iglesias, Kassabian, and Capital Capital Capital Beginning balances Assumed loss of Schedule 1 Step one balances $ 0 $ 0 $ 0 Assumed loss of Schedule 2 Step two balances $ 0 $ 0 $ 0 [The following information applies to the questions displayed below.] The partnership of Garcia, Iglesias, and Kassablan was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets Liabilities Garcia, loan $ 44,000 74,000 $ 184,000 44,000 64,000 Garcia, capital (25%) 120,000 180,000 Iglesias, capital (25%) 44,000 170,000 $532,000 Kassabian, capital (50%) 140,000 Total liabilities and capital $532,000 Required: Prepare a predistribution plan for this partnership. Garcia, Loan Iglesias, Kassabian, and Capital Capital Capital Beginning balances Assumed loss of Schedule 1 Step one balances $ 0 $ 0 $ 0 Assumed loss of Schedule 2 Step two balances $ 0 $ 0 $ 0