The partnershipof W, X, Y, and Z has the following balance sheet:
Cash $ 34,000 Liabilities $ 45,000 Other assets 240,000 W,capital (50% of profits and losses) 64,000 X,capital (30%) 87,000 Y,capital (10%) 44,000 Z,capital (10%) 34,000
Z is personallyinsolvent, and one of his creditors is considering suing thepartnership for the $9,000 that is currently due. The creditorrealizes that liquidation could result from this litigation anddoes not wish to force such an extreme action unless the creditoris reasonably sure of getting the money that is due. If thepartnership sells the other assets, how much money must it receiveto ensure that $9,000 would be available from Zâs portion of thebusiness? Liquidation expenses are expected to be $19,000.(Do not round intermediate calculations.)
Minimum Amount:
| The partnershipof W, X, Y, and Z has the following balance sheet: |
| Cash | $ 34,000 | Liabilities | $ 45,000 |
| Other assets | 240,000 | W,capital (50% of profits and losses) | 64,000 |
| X,capital (30%) | 87,000 | ||
| Y,capital (10%) | 44,000 | ||
| Z,capital (10%) | 34,000 | ||
| Z is personallyinsolvent, and one of his creditors is considering suing thepartnership for the $9,000 that is currently due. The creditorrealizes that liquidation could result from this litigation anddoes not wish to force such an extreme action unless the creditoris reasonably sure of getting the money that is due. If thepartnership sells the other assets, how much money must it receiveto ensure that $9,000 would be available from Zâs portion of thebusiness? Liquidation expenses are expected to be $19,000.(Do not round intermediate calculations.) Minimum Amount: |
Related questions
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet:
| Cash | $ | 43,000 | Liabilities | $ | 66,000 |
| Other assets | 282,000 | Winn, capital (50% of profits and losses) | 73,000 | ||
| Xie, capital (30%) | 90,000 | ||||
| Yang, capital (10%) | 53,000 | ||||
| Zed, capital (10%) | 43,000 | ||||
Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $18,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $18,000 from the liquidation.
Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $18,000 from the liquidation? Liquidation expenses are expected to be $28,000. (Do not round intermediate calculations.)
Minimum Amount: ??? (Please show work)
