Lasu, Ramirez, and Toney, who share income and loss in a 2:1:2 ratio (in percents: Lasu, 40%; Ramirez, 20%; and Toney, 40%), plan to liquidate their partnership. At liquidation, their balance sheet appears as follows. Required Prepare journal entries for (a) the sale of equipment, (b) the allocation of its gain or loss, (c) the payment of liabilities at book value, and (d) the distribution of cash in each of the following separate cases: Equipment is sold for (1) $650,000; (2) $530,000; (3) $200,000 and partners with capital deficits pay their deficits in cash; and (4) $150,000 and partners with deficits do not pay their deficits. (Round to the nearest dollar.)
