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The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: $ 50,000 305,000 $ 60,000 80,000 105,000 60,000 50,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) Cash Other assets Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $4,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $4,000 from the liquidation. Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $4,000 from the liquidation. Liquidation expenses are expected to be $35,000. (Do not round intermediate calculations.) Minimum amount

Answer 1

HT In case of liquidation of the partnership in the minimum amt to be realised out of the the partners get the residual money in the other Assets - Total realisation required a Cash ratio of their final Capital rato before ! allailable before liquidation Colbetala liquidation des tem . Bitte = $118600 - $50,000 capital ratio of red abiti un lab = $618600 in the partnership = zed capital duided wh total Capital i 50.000 £80,000; +-105,000 4600000 st 50,00 pobolli p 3 50,000 50 295,00101: 2195 lontani dolore m i if Zed to get minimum of $4000, then the rolidual (distributable impattinot's Should Wit oooܛܐ a = $23600 xosso 295 Total realisation of the total assets would be - Partners distributable + liquidation espentes + liabilities - $23600 + $ 35000 + $60,000 - $118600

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