Subject: VALUATION CONCEPTS AND METHOD

SIMPLE LIQUIDATION ILLUSTRATED

PETE, TO, AND ZACK HAS OPERATED A LAUNDRYMAT FOR 10 YEAR. THE PARTNERS, EHO SHARES PROFITS 4:3:3, RESPECTIVELY DECIDE TO LIQUIDATE THE PARTNERSHIP. THE FIRM'S BALANCD SHEET JUST BEFORE THE PARTNERS SELLS OTHER ASSETS FOR 30,000 IS AS FOLLOWS:

ASSETS LIABILITIES AND CAPITAL

CASH - 15,000 - WHERE IT CAME FROM LIABILITIES 42,000

OTHER ASSETS - 110,000 - WHERE IT CAME FROM PETE CAPITAL 55,000

TOTAL - 125,0000 TOM CAPITAL 14,000

ZACK CAPITAL 14,000 WHAT IS THE COMPUTATION WHY 14,000

TOTAL 125,000

PERSONAL OF EACH PARTNERS JUST BEFORE LIQUIDATION IS AS FOLLOWS:

ASSETS LIABILITIES

PETE 55,000 - WHERE IT CAME FROM 80,000 - WHY 80,000

TOM 30,000 - WHERE IT CAME FROM 10,000 - WHY 10,000

ZACK 30,000- WHERE IT CAME FROM 50,000 - WHY 50,000

DETERMINE THE AMOUNTS THAT THE PERSONAL CREDITORS WILL RECEIVE FROM ASSETS AND ANY DISGTRIBUTION FROM THE PARTNERSHIP.

PART B

PERSONAL ASSETS

PETE 55,000 - HOW ?

TOM 30,000 - HOW ?

ZACK 30,000 HOW ?

PERSONAL LIABILITIES

PETE 80,000 - HOW ?

TOM 10,000 - HOW ?

ZACK 50,000 - HOW ?

EXCESS (DEFICIENCY)

PETE (25,000) - HOW ?

TOM 20,000 - WHERE IT CAME FROM

ZACK (20,000) - HOW ?

DISTRIBUTION FROM PARTNERSHIP

PETE 17,286 - HOW TO COMPUTE THIS

TOM 0 - HOW ?

ZACK 0 - HOW ?

TOTAL PAYABLE TO CREDITORS

PETE - 72,286 - HOW ?

TOM - 10,000 - HOW ?

ZACK - 30,000 - HOW ?

KINDLY EXPLAIN WHY ALL THE FOLLOWINGS ARE HAPPEN AND THE COMPUTATION THEY USED IT TO SOLVED THE SIMPLE LIQUIDATION METHOD CAN YOU PLEASE SHOW ME CLEARLY I WANT TO STUDY VERY BROAD OF THE COMPUTATION THAT THEY USE SPECIALLY THOSE PERCENTAGE THEY USE IN TOTALS BECAUSE I WAS CONFUSE WHERE THEY GET THE LIABILITIES AND CAPITALS, THE DISTRIBUTION FROM PARTNERSHIP AND THE TOTAL PAYABLE TO CREDITORS, THANK YOU SO MUCH.