*** Someone else answers this question but down below, I don't understand how it was arrived at zero for Miller, $17,000 for Tyson and zero for Watson? CAN YOU PLEASE HELP ME TO UNDERSTAND HOW $17,000 BELOW WAS ARRIVED AT. THE CALCULATIONS DON'T MAKE SENSE, AND I WOULD LIKE TO UNDERSTAND THIS. THANK YOU.

**See question below. If you could PLEASE CLEARLY SHOW HOW YOUR CALCULATIONS ARE DONE SO THAT I CAN UNDERSTAND AND KNOW HOW TO DO IT MYSELF Thank you!

The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively:

Cash $ 58,000 Liabilities $ 41,000

Other assets 118,000 Miller, capital 60,000

Tyson, capital 60,000

Watson, capital 15,000

Total assets $ 176,000 Total liabilities and capital $ 176,000

a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.

b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?

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  a)	Safe Payment
  					Capital Balances
  		Cash	Other Assets	Liabilities	Miller	Tyson	Watson
  	Balances	58000	118000	-41000	-60000	-60000	-15000
  	Collection	0	0
  		58000	118000	-41000	-60000	-60000	-15000
  	Payment to Creditors	-41000	0	41000	0	0	0
  		17000	118000	0	-60000	-60000	-15000
  	Payment to Partners ( Safe Payments )	-17000	0	0	0	17000	0
  		0	118000	0	-60000	-43000	-15000
  		Miller	Tyson	Watson
  *	Capital Balance before Safe payment	60,000	60,000	15,000
  	Non Cash Loss Allocation ( 118000 in 6:2:2 )	70,800	23,600	23,600
  		130,800	83,600	38,600
  	Allocation of $ 17,000 ( Remaining after payment to creditors )	-	17,000	-
  		Miller	Tyson	Watson
  	Safe Payments	-	17,000	-