On January 1st 2030 they have the following balance sheetcashaccts rec.equipment (net)landaccts payablenote payablePelosi capitalTrump capitalSchiff capitalDeSantis capital100,000600,000800,000500,000Required:400,000200,000600,000100,000100,000600,000(remember, losses are divided equally profits: Pelosi and Trump 30% Schiff and DeSantis 20%a) On January 1st how much can each partner take as a safe payment?b) On January 31st, the equipment is sold for $400,000On February 1st, how much can each partner take as a safe payment (assume no safe payments have been made so far)c) On February 28th, the accounts receivable were sold for $400,000. On this date the partnership paid off the note payable andthe accounts payableOn March 1st how much can each partner take as a safe payment (assume no safe payments have been made so far)d) On March 31st, the land was sold for $550,000On April 1st how much will cash will each partner receive (or pay in) if:a) any partner with a negative capital balance CANNOT cover their shortageb) any partner with a negative capital balance CAN cover their shortage

Safe payments are distributions that can be made to partners with the assurance that the amounts distributed will not need to be returned to the partnership at some later date to cover known liabilities or realign partner capital. Assumptions: All partners are personally insolvent. Noncash assets represent possible losses a) On January 1st, Available cash balance =100000 Non-Cash Assets=1900000 (600000+800000+500000) Liabilities = 600000 (400000+200000) The remaining cash balance is less than the liabilities. therefore available cash balances to make safe payments are ZERO The remaining Non-Cash assets are sold at Zero. we assume the worst-case scenario to determine the effect on the partner's capital balances b) on January 31st, the equipment sold for 400,000 Carrying amount is 800,000 Capital Balance Schedule for safe payments Account Balances Cash Non-cash Assets Liabilities Pelosi Trump Schiff DeSantis 100000 1900000 600000 600000 100000 100000 600000 Sale of Equipment, allocate the loss equally 400000 (800000) (100000) (100000) (100000) (100000) 500000 1100000 600000 500000 0 0 500000 Payments of liabilities (500000) (500000) 0 1100000 100000 500000 0 0 500000 Available cash balances to make safe payments are ZEROc) on February 28th, The Account receivables are sold for 400000, and the book value of the account receivables are 600000 Capital Balance Schedule for safe payments Account Balances Cash Non-cash Assets Liabilities Pelosi Trump Schiff DeSantis 100000 1900000 600000 600000 100000 100000 600000 Sale of Equipment & Account Receivables, allocate the loss equally 800000 (1400000) (150000) (150000) (150000) (150000) 900000 500000 600000 450000 (50000) (50000) 450000 Payments of liabilities (500000) (600000) 300000 500000 0 450000 (50000) (50000) 450000 capital balance before safe payments to partners 450000 (50000) (50000) 450000 Allocation of potential losses equally (125000) (125000) (125000) (125000) 325000 (175000) (175000) 325000 Allocation of Deficit of trump and to Pelosi and DeSantis (87500) 175000 0 (87500) Allocation of Deficit of Schiff and to Pelosi and DeSantis (87500) 0 175000 (87500) Safe payments 150000 0 0 150000Note: As per the guideline if the question has more than three sub Questions required to solve the first 3 questions.