Chapter 16
Partnerships:
Liquidation
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objective 1
Understand and explain
terms associated with
partnership liquidations.
16-2
Overview of Partnership Liquidations
 The Uniform Partnership Act of 1997
includes seven sections which deal
specifically with the dissolution and winding
up of a partnership.


Creditors have first claim to the partnership’s
assets.
After the creditors are fully satisfied, any
remaining assets are distributed to the partners
based on the balances in their capital accounts.
16-3
Overview of Partnership Liquidations
 Dissociation

The legal description of the withdrawal of a
partner, including the following:
1. A partner’s death.
2. A partner’s voluntary withdrawal.
3. A judicial determination.

Not all dissociations result in a partnership
liquidation.
16-4
Overview of Partnership Liquidations
 Dissolution


The dissolving of a partnership
Events that cause dissolution and winding up:
1. In a partnership at will, a partner’s express notice
to leave the partnership.
2. In a partnership for a definite term or specific
undertaking:
a) When after a partner’s death or wrongful dissociation, at
least half of the remaining partners decide to wind up the
partnership business.
b) When all of the partners agree to wind up the business .
c) When the term or specific undertaking has expired or
been completed.
16-5
Overview of Partnership Liquidations
 Events that cause dissolution and
winding up:


An event that makes it unlawful to carry on a
substantial part of the partnership business.
A judicial determination.
 On dissolution, the partnership begins the
winding up of the partnership’s business.
16-6
Overview of Partnership Liquidations
 Winding up and liquidation begins after
the dissolution of the partnership.



The partnership continues for the limited
purpose of winding up the business and
completing work in process.
Winding up process includes the transactions
necessary to liquidate the partnership.
Some partnerships change to the liquidation
basis of accounting once they no longer consider
the business to be a going concern.
16-7
Overview of Partnership Liquidations
 Loans to/from partners



According to the UPA 1997, liabilities to partners
for loans the partners made to the partnership
generally have the same status as liabilities to
the partnerships’ third party creditors.
These loans have no priority for payment.
Receivables from partners for loans or other
advances made by the partnership to partners
have the same status as other assets of the
partnership.
16-8
Overview of Partnership Liquidations
 Deficits in partners’ capital accounts



Generally, a partner with a deficit in his or her
capital account must make a contribution to the
partnership to remedy that capital deficit.
Liquidating distributions, in cash, are made to
each partner with a capital credit balance.
If a partner fails to remedy his or her capital
deficit, all other partners must contribute, in the
proportion to which those partners share
partnership losses, the additional amount
necessary to pay the partnership’s obligations.
16-9
Overview of Partnership Liquidations
 Statement of partnership realization and
liquidation



May be prepared to guide and summarize the
partnership liquidation process.
Often called a “statement of liquidation.”
It presents, in worksheet form, the effects of the
liquidation on the partnership balance sheet
accounts.
16-10
Practice Quiz Question #1
The difference between disassociation and
dissolution is:
a. Dissolution relates to adding a powder to a
liquid.
b. Disassociation relates to the withdrawal of
a partner and dissolution relates to the
winding up of a partnership.
c. Dissolution relates to the dissolving of a
partner’s personal assets.
d. Dissolution relates to the withdrawal of a
partner and disassociation relates to the
winding up of a partnership.
16-11
Learning Objective 2
Make calculations related to
lump-sum partnership
liquidations.
16-12
The Liquidation Process
1. Non-cash assets
converted to cash.
2. Creditors paid to
the extent possible.
3. Remaining funds
(if any) distributed
to partners.
16-13
Group Exercise 1: Lump-sum Liquidation
Partners Larry, Curly, and Moe share profits and losses in the ratio of 3:2:1,
respectively. The partners voted to liquidate the partnership when its assets,
liabilities, and capital were as follows:
Cash
Non-cash assets
Total Assets
$ 7,000
90,000
__________
$97,000
Liabilities
Loan, Larry
Loan, Moe
Capital, Larry
Capital, Curly
Capital, Moe
Total Liabilities & Equity
$24,000
5,000
10,000
22,000
27,000
9,000
$97,000
Assume that all the noncash assets were sold for $42,000 and that all cash
was distributed to outside creditors and partners.
REQUIRED
Prepare a statement of realization and liquidation.
16-14
Group Exercise 1: Lump-sum Liquidation
Partners Larry, Curly, and Moe share profits and losses in the ratio of 3:2:1,
respectively. The partners voted to liquidate the partnership when its assets,
liabilities, and capital were as follows:
Cash
Non-cash assets
Total Assets
$ 7,000
90,000
__________
$97,000
Liabilities
Loan, Larry
Loan, Moe
Capital, Larry
Capital, Curly
Capital, Moe
Total Liabilities & Equity
$24,000
5,000
10,000
22,000
27,000
9,000
$97,000
Assume that all the noncash assets were sold for $42,000 and that all cash
was distributed to outside creditors and partners.
Priorities
•
•
•
•
What to do with the loss on sale of non-cash assets?
Pay outside debt.
Pay inside debt.
Distribute remainder to partners
16-15
Group Exercise 1: Solution
Larry, Curly, and Moe
Statement of Realization and Liquidation
Assets
Outside Partners' Loans
Cash
Noncash Liabilities Larry
Moe
Beginning Balance
7,000)
90,000)
Partners' Capital
Larry
Curly
Moe
(24,000) (5,000) (10,000) (22,000) (27,000) (9,000)
Proceeds
$42,000)
 Book Value
(90,000)
Loss
$(48,000)
Larry (3/6)
($24,000)
Curly (2/6)
($16,000)
Moe (1/6)
($8,000)
16-16
Group Exercise 1: Solution
Larry, Curly, and Moe
Statement of Realization and Liquidation
Assets
Outside Partners' Loans
Cash
Noncash Liabilities Larry
Moe
Partners' Capital
Larry
Curly
Moe
Beginning Balance
Asset sale & loss
allocation
Subtotal
Right to setoff
Outside Distributions
Outside Loans
Partners' Loans
Partners' Capital
Ending Balance
16-17
Sharing of Gains & Losses During Liquidation
 Gains and losses incurred on the
realization of noncash assets
during liquidation are:


allocated among the partners in the
profit-and-loss sharing ratio (such as
4:3:1).
unless agreed to otherwise by the
partners.
16-18
Consequences of a Partner Being Personally
Insolvent
 A partner having a capital
account deficit may be able to
eliminate the deficit by


capital contribution.
setoff (against loans to the
partnership).
 A deficit that cannot be
eliminated is allocated to

the remaining partners who have
positive capital balances (using their
P/L sharing ratio).
16-19
Consequences of a Partner Being Personally
Insolvent
 A partner that winds up
absorbing some or all of
another partner’s capital
deficit has


legal recourse against that
partner.
because that partner has
broken the terms of the
partnership agreement.
16-20
Sharing Profits and Losses: In The Ratio of Capital
Balances
 Sharing profits and losses in the ratio of
capital balances


is one of the most important safeguards used in
partnership agreements.
results in no partner ever having a capital
account deficit balance until the losses incurred
in liquidation exceed the total partnership
capital.

Thus, all partners go into a deficit position
simultaneously.
16-21
The Rule of Setoff
A deficit balance in a partner’s capital
account can be eliminated to the extent that
such partner has a loan to the partnership.
Note Payable
to Jones
Capital,
Jones
Balances before setoff
$30,000)
$(11,000)
Apply rule of setoff
(11,000)
$19,000)
11,000)
$0)
Balances after setoff
16-22
How to Know You’ve Done it Right?
If you allocate losses correctly, the
remaining cash balances at the end should
be exactly enough to pay back partners’
capital balances.
Capital
=
16-23
Group Exercise 2: Lump-sum Liquidation—
Insolvent
Partners Huey, Dewey, and Louie share profits and losses in the ratio of
3:3:2, respectively. The partners voted to liquidate the partnership when its
assets, liabilities, and capital were as follows:
Cash
NR from Louie
Non-cash assets
Total Assets
$ 2,000
4,000
82,000
$88,000
Liabilities
Loan, Dewey
Capital, Huey
Capital, Dewey
Capital, Louie
Total Liabilities & Equity
$35,000
17,000
11,000
13,000
12,000
$88,000
• All the noncash assets of $82,000 were sold for $46,000.
• Louie was personally insolvent and unable to contribute any cash.
• Huey and Dewey were both personally solvent and able to eliminate any
deficits in their capital accounts through setoff or contribution.
• All cash was distributed to outside creditors and partners.
REQUIRED
Prepare a statement of realization and liquidation.
16-24
Group Exercise 2: Solution
Huey, Dewey, and Louie
Statement of Realization and Liquidation
Assets
Cash
Noncash
Beginning Balance
2,000)
86,000
Outside
Liabilities
(35,000)
Part Loan
Dewey
(17,000)
Partners' Capital
Huey
Dewey
Louie
(11,000)
(13,000)
(12,000)
16-25
Group Exercise 2: Solution
Huey, Dewey, and Louie
Statement of Realization and Liquidation
Assets
Cash
Noncash
Beginning Balance
NR Write-off
2,000)
Outside
Liabilities
86,000
(4,000)
Part Loan
Dewey
(35,000)
(17,000)
Partners' Capital
Huey
Dewey
Louie
(11,000)
Proceeds
$46,000)
 Book Value
(82,000)
Loss
(13,000)
(12,000)
4,000)
$(36,000)
Huey (3/8)
($13,500)
Dewey (3/8) Louie (2/8)
($13,500)
($9,000)
16-26
Group Exercise 2: Solution
Huey, Dewey, and Louie
Statement of Realization and Liquidation
Assets
Cash
Noncash
Outside
Liabilities
Part Loan
Dewey
Partners' Capital
Huey
Dewey
Louie
Beginning Balance
NR Write-off
Asset sale & loss allocation
Subtotal
Write off Louie
Subtotal
Right to setoff
Huey contribution
Outside Distributions
Outside Loans
Partners' Loans
Ending Balance
16-27
Practice Quiz Question #2
Which of the following statements is true
about a lump-sum partnership liquidation?
a. Lump-sum liquidations take place over an
extended period of time.
b. Lump-sum liquidations can only take place
when the partnership has two partners.
c. Lump-sum liquidations relate mainly to
corporations.
d. Lump-sum liquidations take place all at
once or over a short period of time .
16-28
Learning Objective 3
Make calculations related to
installment partnership
liquidations.
16-29
Installment Liquidations: Priority In Distributing
Cash
 What is an installment liquidation?



Assets are sold over time.
Cash is distributed throughout the liquidation
process.
Who gets priority in each round?
 No cash distributions are made to partners
until outside creditors have been paid in full.

This holds true for both:


Lump-sum liquidations.
Installment liquidations.
16-30
The Statement of Realization and Liquidation
 The statement of realization and
liquidation



is an historical statement.
portrays what actually happened in the past
(during the liquidation process).
is usually prepared in a lump-sum liquidation
(or as a “look back” at an installment
liquidation).
16-31
The Schedule of Safe Payments
 The schedule of safe payment


is a pro forma (what if) statement for
installment liquidations.
portrays what could happen in the
future—on a worst-case basis.
 Must prepare a new schedule for
each $ distribution
16-32
Cash Distribution Plan
 The cash distribution plan


is a pro forma (what if) statement for
installment liquidations.
is only prepared once at the beginning
of the winding up process.
16-33
Installment Liquidations: “Inside” versus
“Outside” Loans
 Some people seem to have a “fixation” on “equality”
between “inside” and “outside” debt.



Strictly speaking, the UPA of 1997 says they are equal.
In practice, partners frequently need to subordinate their debt
to existing “outside” debt.
We will assume subordination in all in-class examples.
 It makes sense to make payments in the following order:



Outside debt
Inside debt
Capital
 However, this order can result in inequities.



Partner gets payment for loan and spends it.
Partner can’t make up deficit balance.
Other partners have to cover the deficit.
 The legal doctrine of setoff effectively treats loans as
additional capital investments to avoid inequities.
16-34
Thoughts on Installment Liquidations
 Don’t sell everything at once … BE PATIENT!
 You can’t just start handing out cash!
 You need a plan to ensure FAIRNESS!
 Two types of “plans” for distributing cash:
1. Cash Distribution Plan
(beginning of the process)
2. Schedule of Safe Payments
(with each distribution)
 Ensures that no one gets too much cash too soon.
16-35
Group Exercise 3: Distributing Available $ to
Partners
The partnership of Snap, Crackle, and Pop is in the process of being liquidated.
The trial balance immediately after the sale of a portion of the noncash assets
and full payment to outside creditors is as follows:
Cash
NR from Crackle
Non-cash assets
Loan, Snap
Capital, Snap
Capital, Crackle
Capital, Pop
Totals
$27,000
13,000
42,000
__________
$82,000
$12,000
10,000
19,000
41,000
$82,000
Snap wants the available cash distributed to her to pay off her loan—she cites
Section 807 of the UPA, which states that partners’ loans have priority over
partners’ capital. Pop wants the cash distributed to him because he has the
largest capital investment. Crackle believes that it should be distributed
equally, which is how profits and losses are shared.
REQUIRED
1. Evaluate the position of each partner.
2. Who should receive the $27,000 available cash?
3. Optional: If subsequent to the cash distribution of $27,000, noncash assets having a
book value of $30,000 are sold for $9,000, who receives the $9,000?
16-36
Group Exercise 3: Solution
PART 1
 Snap quotes the UPA properly but does not consider the rule
of setoff, which essentially treats a partner’s loan as a capital
contribution in determining how cash should be distributed
to partners.
 Pop’s position indirectly states that he is most able to bear
losses and the cash should be distributed considering this
ability. This general approach is used in distributing cash to
partners.
 Crackle’s position is without merit. The distribution of cash in
liquidation is not related to the manner of sharing profits and
losses.
16-37
Schedule of Safe Payments
 No cash to partners until AFTER all outside
creditors are paid in full.
 Before any cash goes to the partners, consider
two hypothetical worst-case scenarios.

All non-cash assets worthless (distribute losses)

Assume partners absorb any deficits
 Cash only goes to partners with positive
balances.

It means they have enough excess invested to absorb
even the worst possible scenarios!
16-38
Group Exercise 3 Continued: Schedule of Safe
Payments
The partnership of Snap, Crackle, and Pop is in the process of being
liquidated. The trial balance immediately after the sale of a portion of the
noncash assets and full payment to outside creditors is as follows:
Cash
NR from Crackle
Non-cash assets
Loan, Snap
Capital, Snap
Capital, Crackle
Capital, Pop
Totals
$27,000
13,000
42,000
__________
$82,000
$12,000
10,000
19,000
41,000
$82,000
Snap wants the available cash distributed to her to pay off her loan—she
cites Section 807 of the UPA, which states that partners’ loans have priority
over partners’ capital. Pop wants the cash distributed to him because he has
the largest capital investment. Crackle believes that it should be distributed
equally, which is how profits and losses are shared.
REQUIRED
1. Evaluate the position of each partner.
2. Who should receive the $27,000 available cash?
3. Optional: If subsequent to the cash distribution of $27,000, noncash assets having
a book value of $30,000 are sold for $9,000, who receives the $9,000?
16-39
Group Exercise 3: Solution
PART 2
 The two worst-case assumptions are needed to determine
who gets the cash. A schedule of safe payments follows:
Schedule of Safe Payments to Partners
Partner
Snap
Crackle
Pop
Preliquidation loan balance
Preliquidation capital balance
Preliquidation loan from partnership
First worst-case assumption:
Assume full loss of all non-cash assets
Subtotal
Second worst-case assumption:
Assume Crackle's deficit is absorbed by
other partners
Cash to be distributed to Snap and Pop
16-40
Group Exercise 3 Continued: Schedule of Safe
Payments
The partnership of Snap, Crackle, and Pop is in the process of being
liquidated. The trial balance immediately after the sale of a portion of the
noncash assets and full payment to outside creditors is as follows:
Cash
NR from Crackle
Non-cash assets
Loan, Snap
Capital, Snap
Capital, Crackle
Capital, Pop
Totals
$27,000
13,000
42,000
__________
$82,000
Proceeds
$12,000
10,000
19,000
41,000
$82,000
 Book Value
Loss
$9,000)
(30,000)
$(21,000)
Snap wants the available cash distributed to her to pay off her loan—she
cites Section 807 of the UPA, which states that partners’ loans have priority
over partners’ capital. Pop wants the cash distributed to him because he has
the largest capital investment. Crackle believes that it should be distributed
equally, which is how profits and losses are shared.
REQUIRED
1. Evaluate the position of each partner.
2. Who should receive the $27,000 available cash?
3. Optional: If subsequent to the cash distribution of $27,000, noncash assets
having a book value of $30,000 are sold for $9,000, who receives the $9,000?
16-41
Group Exercise 3: Solution
PART 3
Snap
Loan
Beginning Balances
Snap Crackle Pop
Capital Capital Capital
$12,000) $10,000) $19,000) $41,000)
First Cash Distribution
Updated Balances
Allocation of loss on sale
Updated Balances
16-42
Group Exercise 3: Solution
PART 3
Schedule of Safe Payments to Partners
 Beginning Balances are after the above cash distribution of $27,000 and
after the $21,000 loss on the sale of noncash assets for $9,000.
Schedule of Safe Payments to Partners
Snap
Partner
Crackle
Pop
Preliquidation loan balance
Preliquidation capital balance
Preliquidation loan from partnership
First worst-case assumption:
Assume full loss of all non-cash assets
Subtotal
Second worst-case assumption:
Assume Crackle's deficit is absorbed by other
partners
Cash to be distributed to Snap and Pop
16-43
Installment Liquidations: Different Strokes For
Different Folks
 The amount to be distributed to each
partner at any point in time can be
determined by preparing either of the
following items:

Schedules of safe payments at each cash
distribution date.


Will have to be done several times.
A cash distribution plan at the beginning of the
liquidation process.

Need be done only once.
16-44
Installment Liquidations
 The effect of distributing cash to partners
based on either
(a) schedules of safe payments or
(b) cash distribution plans
is to bring the capital balances into the
profit-and-loss sharing ratio.
16-45
Installment Liquidations: Loss Absorption
Potential
 Conceptually, the first cash distribution
to partners goes to that partner who
has the highest loss absorption
potential (LAP).

This is not necessarily the partner who has the
highest capital balance.
16-46
Installment Liquidations: Loss Absorption
Potential—Calculating
 The loss absorption potential (LAP) of
each partner is calculated by

dividing the partner’s capital balance by his or
her profit-and-loss sharing percentage.
Capital balance, Jones
Jones’ P/L sharing percentage
$80,000
20%
= $400,000
Loss
Absorption
Potential
16-47
Installment Liquidations: Loss Absorption
Potential—Loans “To”
 In calculating a partner’s loss absorption
potential, a partner’s loan to the partnership
is added to the partner’s capital balance.
Capital balance, Jones
Note payable to Jones
Total
Jones’ P/L sharing percentage
$80,000
10,000
$90,000
20%
PLUS
= $450,000
Loss
Absorption
Potential
16-48
Installment Liquidations: Loss Absorption
Potential—Loans “From”
 In calculating a partner’s loss absorption
potential, a partner’s loan from the
partnership is subtracted from the partner’s
capital balance.
Capital balance, Jones
Note payable from Jones
Total
Jones’ P/L sharing percentage
$80,000
(5,000)
$75,000
20%
MINUS
= $375,000
Loss
Absorption
Potential
16-49
Installment Liquidations: Loss Absorption
Potential—Implications
 Consequences of Having the Highest Loss
Absorption Potential:
He or she will be:


The first partner to receive cash.
The partner that could suffer the greatest inequity
in relation to his or her capital balance.
It is NOT a good thing to have
the highest loss absorption potential.
16-50
Group Practice: Loss Absorption Potential
The partnership of Snap, Crackle, and Pop is in the process of being
liquidated. The trial balance immediately after the sale of a portion of the
noncash assets and full payment to outside creditors is as follows:
Cash
NR from Crackle
Non-cash assets
Loan, Snap
Capital, Snap
Capital, Crackle
Capital, Pop
Totals
$27,000
13,000
42,000
__________
$82,000
$12,000
10,000
19,000
41,000
$82,000
REQUIRED
 Calculate the loss absorption potential for Snap, Crackle, and Pop.
16-51
Group Practice: Loss Absorption Potential
Snap
Capital
Crackle
Pop
$10,000) $19,000) $41,000)
Loan to (from) partnership
Profit/loss sharing ratio
Loss absorption potential
Based on these calculations, who should receive cash first?
16-52
Practice Quiz Question #3
In liquidation, cash distributions to
partners are determined based on:
a. Who has the highest capital balance.
b. How profits and losses are shared.
c. Partners’ loans to the partnership
having priority over partners’ capital
balances.
d. The marshalling of assets principle.
e. The rule of setoff.
f. None of the above.
16-53
Group Exercise 3 Continued: Cash Distribution
Plan
The partnership of Snap, Crackle, and Pop is in the process of being
liquidated. The trial balance immediately after the sale of a portion of the
noncash assets and full payment to outside creditors is as follows:
Cash
NR from Crackle
Non-cash assets
Loan, Snap
Capital, Snap
Capital, Crackle
Capital, Pop
Totals
$27,000
13,000
42,000
__________
$82,000
12,000
10,000
19,000
41,000
$82,000
Snap wants the available cash distributed to her to pay off her loan—she
cites Section 807 of the UPA, which states that partners’ loans have priority
over partners’ capital. Pop wants the cash distributed to him because he has
the largest capital investment. Crackle believes that it should be distributed
equally, which is how profits and losses are shared.
REQUIRED
1. Evaluate the position of each partner.
2. Who should receive the $27,000 available cash?
3. Optional: If subsequent to the cash distribution of $27,000, noncash assets
having a book value of $30,000 are sold for $9,000, who receives the $9,000?
16-54
Cash Distribution Plan: Snap, Crackle, and Pop
First $27,000 Distribution
Snap
Pop
$ 27,000)
Next $9,000 Distribution
Snap
Pop
$ 9,000)
Cash Distribution Plan
Loss Absorption Potential
Snap Crackle
Pop
Loss absorption potential
Cash distributed to Pop
66,000
Snap
Snap Crackle
Pop
Loan
Capital Capital Capital
12,000 10,000
6,000 41,000 )
18,000 123,000
Cash distributed to Pop/ Snap
Priorities:
16-55
Group Exercise 4: Installment Liquidation
Partners Potter, Granger, and Weasley share profits and losses in the ratio
2:1:1, respectively. The partners voted to liquidate the partnership when
its assets, liabilities, and capital were as follows:
Cash
NR from Potter
Other assets
Liabilities
Loan, Granger
Capital, Potter
Capital, Granger
Capital, Weasley
Totals
$ 25,000
15,000
210,000
__________
$250,000
$ 70,000
18,000
44,000
10,000
108,000
$250,000
The partnership will be liquidated over a long period of time. Cash will be
distributed to the partners as it becomes available. The first sale of
noncash assets having a book value of $110,000 realized $80,000.
REQUIRED
 Determine how the available cash should be distributed to the partners after this
first sale.
16-56
Group Exercise 4: Schedule of Safe Payments
Step 1: Sale of Non-cash Assets
Proceeds
 Book Value, non-cash assets sold
Realized loss
Remaining non-cash assets
Step 2: Payment of Outside Liabilities
Original cash on hand
+ Sale proceeds
Total cash available for debt payment
 Payment of outside liabilities
Cash available for distribution to partners
16-57
Group Exercise 4: Schedule of Safe Payments
Step 3: Update Capital Balances
Original balance
Potter
Granger
44,000)
10,000)
Weasley
108,000)
 Loss allocation from asset sale
Updated Balance
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Group Exercise 4: Schedule of Safe Payments
Schedule of Safe Payments to Partners
Potter
Granger
Weasley
Loan to partnership
Pre-distribution capital balance
Loan from partnership
Equivalent Capital
First worst-case assumption:
Assume full loss of all non-cash assets
Subtotal
Second worst-case assumption:
Assume deficits are absorbed by Weasley
Cash to be distributed to Weasley
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Group Practice: Loss Absorption Potential
Potter
Capital
$44,000)
Granger Weasley
$10,000) $108,000)
Loan to (from) partnership
Profit/loss sharing ratio
Loss absorption potential
Based on these calculations, who should receive cash first?
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Group Exercise 4: Cash Distribution Pl
First $35,000 Distribution
Potter Granger Weasley $ 35,000)
Cash Distribution Plan
Loss absorption potential
Cash distributed to Weasley
50%
25%
25%
Loss Absorption Potential Granger Potter Granger Weasley
Potter Granger Weasley
Loan
Capital Capital Capital
18,000 29,000 10,000 108,000 )
58,000 112,000 432,000
Cash distributed to Weasley
and Granger
Priorities:
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Practice Quiz Question #4
Which of the following is NOT true about the
schedule of safe payments and cash distribution
plans?
a. Cash distribution plans are prepared multiple
times during the liquidation as cash comes in.
b. Cash distribution plans are prepared at the
beginning of the liquidation.
c. Schedules of safe payments are prepared
multiple times during the liquidation as cash
comes in.
d. The allocation of assets to partners is the
same under the cash distribution plan and
schedule of safe payments.
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Conclusion
The End
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