<u>Solution and Explanation:</u>
The total amount of cash available for safe payments would be $25,000 (90,000 - 60,000 - 5,000). This amount will be distributed between Henry and Jacobs in the ratio of 6:4 meaning that $15,000 (25,000*60%) will be given to Henry and $10,000 (25,000*40%) will be given to Jacobs.
The value of $120,000 will be distributed to the partners as follows:
                                   Henry                Issac             Jacobs
Equity                           80,000                 110,000           140,000
Less Loss on Assets  36,000                  72,000              72,000 
Liquidation Expenses  1,000                      2,000          2,000 
Balances                   43,000                   36,000          66,000
Less Distribution 
of Safe Payments to Partners 15,000                  0             10,000
Net Balances                    $28,000  $36,000  $56,000