Question: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive

Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash.

Note: Amounts to be deducted should be entered with a minus sign.

A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: Berzina, capital (48%) $ 59,000 Horvath, capital (30%) 39,000 Markov, capital (16%) 34,008 Petronis, capital (20%) 34,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances

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