Problem #15 Installment Liquidation: Cash Priority Program The assets and equities of the Perdales, Ceballus and Bandonell partnership at the end of its fiscal year ended Oct. 31, 2018 are as follows: Assets P 15,000 inventory 20,000 Property and Equipment 40.000 Loan from Bandones 50.000 10,000 45.000 loan to Ceballus 70,000 $,000 30,000 P150 000 Bandonell Capital (20 8 ) 15.000 $150,000 The partners decided to liquidate the partnership. They estimated that the non-cash assets, other than the loan to Ceballus, can be converted into P100,000 cash over the two-month period ending Dec. 31, 2018. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: 1. The partner most vulnerable to partnership losses on liquidation is: a. Perdales b. Bandonell C. Ceballus d. Ceballus and Perdales equally 2. If P65,000 is available for the first distribution, it should be paid to Priority Creditors Perdates Bandones P60,000 P 5.000 $0,000 12,000 3,000 60,000 1.500 2.500 1.000 $0,000 5,000 10,000 3. If a total amount of P7,500 is available for distribution to partners after all outside liabilities are paid, it should be paid as follows: Perdales Ceballus Bandonell 3. P7,500 P O P O 0 3,750 3,750 C. 2.250 3,750 1,500 2.500 2,500 2.500