On August 1, 2020, Equitech Company Is Entering Liquidation Equitech Adopts the Liquidation Basis of Accounting as of August

On August 1, 2020, Equitech Company is entering liquidation. Its balance sheet, prepared using GAAP for a going concern, is as follows:
$$\begin{array} { l r l r } \text { Cash } & \$ 10,000 & \text { Accounts payable } & \$ 350,000 \\\text { Accounts receivable } & 125,000 & \text { Loans payable } &\underline{ 1,000,000} \\\text { Inventories } & 250,000 & \text { Total liabilities } & 1,350,000 \\\text { Property \& equipment, net } & 1,500,000 & & \\\text { Intangible assets, net } &\underline{ 100,000 }& \text { Equity } &\underline{ 635,000} \\\text { Total assets } &\underline{ \$ 1,985,000} & \text { Total liabilities and equity } & \underline{\$ 1,985,000} \\\end{array}$$ Equitech adopts the liquidation basis of accounting as of August 1, 2020. The following information is available concerning valuations:
1) Expected proceeds from liquidation of reported assets, other than cash:
•Accounts receivable, $100,000
•Inventories, $200,000
•Property and equipment, $900,000
•Intangible assets, $0
2) Expected direct costs of liquidating reported assets:
•Accounts receivable, $2,000
•Inventories, $3,000
•Property and equipment, $15,000
3) Expected compensation to be paid during the liquidation period is $40,000.
4) The company has outstanding customer orders that it plans to fulfill during the liquidation period. Estimated revenues on these orders are $50,000, and estimated cash costs of fulfilling the orders are $34,000.
During the three-month period ending October 31, 2020, Equitech collected accounts receivable of $45,000, sold inventory for $150,000 and property for $50,000, paid liquidation costs of $6,000, and paid compensation of $30,000. Net cash collected from customer orders totaled $9,000. Equitech paid the following reported liabilities: $60,000 accounts payable and $163,000 loans payable.
The following information is available concerning estimated valuations on October 31, 2020:
1) Expected proceeds from liquidation of remaining assets, other than cash:
•Accounts receivable, $60,000
•Inventories, $40,000
•Property and equipment, $700,000
2) Expected costs of liquidating remaining assets:
•Accounts receivable, $200
•Inventories, $100
•Property and equipment, $14,700
3) Compensation to be paid is $12,000.
4) Estimated revenues on orders to be fulfilled are $20,000, and estimated cash costs of fulfilling these orders are $15,000.
Required
a. Prepare a statement of changes in net assets in liquidation for the three months ending October 31, 2020.
b. Prepare a statement of net assets in liquidation as of October 31, 2020.