Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a $4$:$3$:$2$:$1$ basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are

$\backslash$table$[[$Chen$,$ capital,$$60,000],[$Korhonen$,$ capital,$27,000],[$Lebuca$,$ capital,$43,000],[$Swid$,$ capital,$20,000]]$

Required:

Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash.

References

Note: Amounts to be deducted should be entered with a minus sign.

$\backslash$table$[[,,$Chen,Korhonen,Lebuca,Swid$],[$Beginning balances,,,,,$],[$Assumed loss,,,,,$],[$Balances$,,,,,],[$Assumed loss,,,,,$],[$Balances$,,,,,],[$Assumed loss,,,,,$],[$Balances$,,,,,]]$