The Pen, Evan, and Torves Partnership have asked you to assist in winding-up its business affairs. You compile the following information.

1.	The partnerships trial balance on June 30, 20X1, is

	Debit			Credit
Cash	$	6,400
Accounts Receivable (net)		24,000
Inventory		18,000
Plant and Equipment (net)		99,300
Accounts Payable				$	11,500
Pen, Capital					59,000
Evan, Capital					49,200
Torves, Capital					28,000
Total	$	147,700		$	147,700

2.	The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent.

3.	The partners are considering an offer of $104,000 for the firms accounts receivable, inventory, and plant and equipment as of June 30. The $104,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.

Required:

Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell the assets.

PET PARTNERSHIP
Cash Distribution Plan
June 30, 20X1
	Loss Absorption Potential			Capital Accounts
	Pen	Evan	Torves	Pen		Evan		Torves
Profit and loss percentages	0	0	0	50	%	30	%	20	%
Preliquidation capital balances	0	0	0	$59,000		$49,200		$28,000
Loss absorption potential (capital balances / loss percent)	$118,000	$164,000	$140,000	0		0		0
Decrease highest LAP to next highest:
Evan	0	14,760	0	0
	$118,000	$149,240	$140,000	$59,000		$49,200		$28,000
Decrease LAPs to next highest:
Evan	0		0	0				0
Torves	0	0		0		0
	$118,000	$149,240	$140,000	$59,000		$49,200		$28,000

I got some of it, but the explanations on the solutions manual did not explain how to get the parts I am missing.

thank you