The partnership of Winn, Xie, Yang, and Zed has the following balance sheet:

Zed is personally Insolvent, and one of Zed's creditors is considering suing the partnership for the $$5,000$ that is currently owed. The

creditor realizes that this IItigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed

Is reasonably sure of obtaining at least $$5,000$ from the IIquidation.

Requlred:

a$.$ Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed

recelves $$5,000$ from the IIquidation. Liquidation expenses are expected to be $$24,000.$

b$.$ For how much must the partnershlp sell the other assets to ensure that Zed recelves $$5,000$ from the liquidation?

Complete this question by entering your answers in the tabs below.

Partner

Balances

Sale of Assets

Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that

Zed receives $$10,000$ from the liquidation. Liquidation expenses are expected to be $$30,000.$