During

$20222022,$

BreeBree

loans her brother

KippKipp

$ $50$ comma $000$$$50,000,$

which he intends to use to establish a small business. Because

KippKipp

has no other assets and needs cash to establish the$$ business, the agreement provides that

KippKipp

will repay the debt if$($and when$)$ sufficient funds are generated from the business.

BreeBree

and

KippKipp

do not establish an interest rate. The business is$$ unsuccessful, and

KippKipp

is forced to file for bankruptcy in

$20232023.$

By the end of

$20232023,$

it is estimated that the creditors will receive only

$35\%35\%$

of the amount owed. In

$20242024$

the bankruptcy proceedings are$$ closed, and the creditors receive

$5\%5\%$

of the amount due on the debt.