Subject: VALUATION CONCEPTS AND METHOD

SIMPLE LIQUIDATION ILLUSTRATED

PETE, TO, AND ZACK HAS OPERATED A LAUNDRYMAT FOR 10 YEAR. THE PARTNERS, EHO SHARES PROFITS 4:3:3, RESPECTIVELY DECIDE TO LIQUIDATE THE PARTNERSHIP. THE FIRM'S BALANCD SHEET JUST BEFORE THE PARTNERS SELLS OTHER ASSETS FOR 30,000 IS AS FOLLOWS:

ASSETS LIABILITIES AND CAPITAL

CASH - 15,000 LIABILITIES 42,000

OTHER ASSETS - 110,000 PETE CAPITAL 55,000

TOTAL - 125,0000 TOM CAPITAL 14,000

ZACK 14,000

TOTAL 125,000

PERSONAL OF EACH PARTNERS JUST BEFORE LIQUIDATION IS AS FOLLOWS:

ASSETS LIABILITIES

PETE 55,000 80,000

TOM 30,000 10,000

ZACK 30,000 50,000

DETERMINE THE AMOUNTS THAT THE PERSONAL CREDITORS WILL RECEIVE FROM ASSETS AND ANY DISGTRIBUTION FROM THE PARTNERSHIP.

PART B

PERSONAL ASSETS

PETE 55,000

TOM 30,000

ZACK 30,000

PERSONAL LIABILITIES

PETE 80,000

TOM 10,000

ZACK 50,000

EXCESS (DEFICIENCY)

PETE (25,000)

TOM 20,000

ZACK (20,000)

DISTRIBUTION FROM PARTNERSHIP

PETE 17,286

TOM -

ZACK -

TOTAL PAYABLE TO CREDITORS

PETE - 72,286

TOM - 10,000

ZACK - 30,000

KINDLY EXPLAIN WHY ALL THE FOLLOWINGS ARE HAPPEN THANK YOU SO MUCH.