Trish Craig and Ted Smith have a partnership and share income and losses in a 3:1 ratio. They decide to liquidate their partnership on December 31, 2014, when the balance sheet shows the following:

Required Prepare the entries on December 31, 2014, to record the liquidation under each of the following independent assumptions:
a. Property, plant and equipment are sold for $720,000.
b. Property, plant and equipment are sold for$140,000.