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The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: $ 36,000 $ 46,000 66,000 84,000 46,000 36,000 Cash Other assets 242,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $5,000 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 $5,000 from the liquidation. Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $5,000 from the liquidation. Liquidation expenses are expected to be $21,000.(Do not round intermediate calculations.)

The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: $ 36,000 $ 46,000 66,000 84,000 46,000 36,000 Cash Other assets 242,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $5,000 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 $5,000 from the liquidation. Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $5,000 from the liquidation. Liquidation expenses are expected to be $21,000.(Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $ 36,000 242,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) $ 46,000 66,000 84,000 46,000 36,000 Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $5,000 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 $5,000 from the liquidation. Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $5,000 from the liquidation. Liquidation expenses are expected to be $21,000.(Do not round intermediate calculations.)
Transcribed Image Text:The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $ 36,000 242,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) $ 46,000 66,000 84,000 46,000 36,000 Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $5,000 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 $5,000 from the liquidation. Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $5,000 from the liquidation. Liquidation expenses are expected to be $21,000.(Do not round intermediate calculations.)
Beginning capital Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Answer is complete but not entirely correct. Winn Yang $ $ (66,000) 66,000 $ $ $ $ $ $ $ 0 0 0 0 0 Xie 84,000 $ 46,000 $ $ (460) $ 38,400 $ 45,540 $ $ (16,800) $ $ 28,740 $ $ (48,000) $ $ (19,260) $ (45,600) (38,400) 0 0 0 Zed 36,000 (15,200) 20,800 (16,800) X 4,000 (28,000) X (24,000)
Transcribed Image Text:Beginning capital Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Answer is complete but not entirely correct. Winn Yang $ $ (66,000) 66,000 $ $ $ $ $ $ $ 0 0 0 0 0 Xie 84,000 $ 46,000 $ $ (460) $ 38,400 $ 45,540 $ $ (16,800) $ $ 28,740 $ $ (48,000) $ $ (19,260) $ (45,600) (38,400) 0 0 0 Zed 36,000 (15,200) 20,800 (16,800) X 4,000 (28,000) X (24,000)
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