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Question 1 [25 marks] a) Merz, Dechter, and Flowers are partners in a partnership and share profits and losses 40%, 40%, and

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Safe Payments method calculations
Possible losses merz capital (40%) dechter capital (40%) flowers capital (20%)
Equity (net of loans)                        40,000.00       18,000.00                 2,000.00
Assumed losses:
    Loss on assets                     40,000.00                      (16,000.00)    (16,000.00)              (8,000.00)
liquidation expense                     20,000.00                        (8,000.00)       (8,000.00)              (4,000.00)
Subtotal                        16,000.00       (6,000.00)            (10,000.00)
Assume partners loss                      (16,000.00)
Safe Payments                                        -                        -                                -  
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