A1.

The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 58,000 314,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (304) Marichal, capital (204) $ 55,500 37,500 103,000 93,000 83,000 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $18,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $96,000 are sold for $71,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Reg A1 Req AZ Reg B Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. Partner Capital Balance Loss Allocation Maximum Loss That Can Be Absorbed $ S Step 1 Drysdale Koufax Marichal Step 2 Koufax Marichal 140,500 50 93,000 130 83,000 120 % % % $ $ $ 8.700 26.800 40 % % Reg A2 >