The assets and equities of the Quen, Reed, and Stacy partnership at the end of its fiscal year on October 31, 2011, are as follows:

The partners decide to liquidate the partnership. They estimate that the non-cash assets, other than the loan to Reed, can be converted into $100,000 cash over the two-month period ending December 31, 2011. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process.1. The partner most vulnerable to partnership losses on liquidation is:a. Quenb. Reedc. Reed and Quen equallyd. Stacy2. If $90,000 is available for the first distribution, it should be paid to:

3. If a total amount of $7,500 is available for distribution to partners after all non-partner liabilities are paid, it should be paid asfollows:

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Equities Assets Cash $ 15,000 $ 50,000 Liabilities Receivables-net Loan from Stacy Quen capital (30%) Reed capital (50%) Stacy capital (20%) 45,000 30,000 40,000 Inventory Plant assets-net Loan to Reed 70,000 5.000 $150,000 15,000 $150,000