Hello, Can you please help me find the answer to this problem. It asks for the m

Question

Hello, Can you please help me find the answer to this problem. It asks for the minimum amount.------------------------------------------------------------------------------------------------------------------------------------------------------------------

Problem 15-27 (LO 15-5) The partnership of W, X, Y, and Z has the following balance sheet: Cash $ 51,000 Liabilities $ 65,000 Other assets 306,000 W, capital (50% of profits and losses) 81,000 X, capital (30%) 99,000 Y, capital (10%) 61,000 Z, capital (10%) 51,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $26,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $26,000 would be available from Z’s portion of the business? Liquidation expenses are expected to be $36,000. (Do not round intermediate calculations.)

Explanation / Answer

Other Assets = $306000

Z 's Share in Profit and loss =10%

If the Partnership sells the other assets , then Z's share in the amount would be 10% of $306000 =$30600

The amount of $30600 would be sufficient to pay off the amount due of $26000

So they may sell the portion of Z's share in other assets valuing $30600 to ensure the payment of $26000 due .

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