EXERCISES 1. The partnership of Xavier, Yarnell and Zablicki have decided to liquidate their partnership. At the time, the partners share income and loss in the ratio of 2:2:6. No partner can make any payments into the partnership. The partnership sold the noncash assets for $20,000. A. Complete the liquidation schedule below Marshalling of Assets - Simple Liquidation Noncash Y. I X . Y. Z. Cash | Assets Liabilities | Loan Capital | Capital Capital Beginning balances $5,000 $40,000 $15,000 $2,000 $12,000 $1,000 $15,000 Sell noncash assets | | Pay creditors TTTTTT Offset loan Allocated deficit Payment to partners $7,250 0 $750 B. Now assume the noncash assets were sold for $16,000. Complete the liquidation schedule below Marshalling of Assets Simple Liquidation Noncash Y, X, Y, Z, Cash Assets Liabilities Loan Capital Capital Capital Beginning balances $5,000 $40,000 $15,000 $2,000 $12,000 $1,000 $15,000 Sell noncash assets Pay creditors Offset loan Allocated deficit Payment to partners