Refers to the following information to answer questions $6$ and $7$: Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a $4$:$2$:$2$:$2$ basis, respectively. They were beginning to liquidate their business. At the start of the process, Capital account balances were as follows:

Dancy Capital

Resse Capital

Newman Capital

Jahn Capital

$$72,000$

$$32,000$

$$52,000$

$$24,000$

$6.$ Which one of the following statements is true for a predistribution plan

a$.$ The first available $$16,000$ would go to Newman.

b$.$ The first available $$20,000$ would go to Dancey.

c$.$ The first available $$8,000$ would go to Jahn.

d$.$ The first available $$8,000$ would go to Newman.

e$.$ The first available $$4,000$ would go to Jahn

$7.$ Which one of the following statements is true for a predistribution plan?

a$.$ The first available $$16,000$ would go to Newman. The next $$12,000$ would go $$8,000$ to Dancey and $$4,000$ to Newman. The following $$32,000$ would be shared equally between Dancey, Reese, and Newman. A total distribution of $$60,000$ would be required before all four partners share any further payments equally.

b$.$ The first available $$16,000$ would go to Newman. The next $$12,000$ would go $$8,000$ to Dancey and $$4,000$ to Newman. The following $$32,000$ would be shared by Dancey, Reese, and Newman. The total distribution would be $$60,000$ before all four partners share any further payments in their profit and loss sharing ratios.

C$.$ The first $$20,000$ would go to Newman. The next $$8,000$ would go to Dancey. The next $$12,000$ would be shared equally by Dancey, Reese, and Newman. The total distribution would be $$40,000$ before all four partners share any further payments equally.

d$.$ The first available $$8,000$ would go to Newman. The next $$4,000$ would be split equally between Dancey and Newman. The following $$12,000$ would be shared by Dancey, Reese, and Newman. The total distribution would be $$24,000$ before all four partners share any further payments equally.

e$.$ The first available $$8,000$ would go to Newman. The next $$4,000$ would be split equally between Dancey and Newman. The following $$12,000$ would be shared by Dancey, Reese, and Newman. The total distribution would be $$24,000$ before all four partners share any further payments in their profit and loss sharing ratios.