Hello, I need help with this question on my homework. Please don't copy the other chegg posted because it's wrong. Help and please show work, excel would be best if not, its okay! :)
Hello, I need help with this question on my homework. Please don't copy the other chegg posted because it's wrong. Help and please show work, excel would be best if not, its okay! :)
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 48,000 264,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 43,000 35,000 88,000 78,000 68,000 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 $27,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $86,000 are sold for $66,000. How is the available cash to be divided? Req A1 Req A2 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 Step 1 Drysdale Koufax $ 123,000 50 % $ $ 78,000 30 % $ 246,000 260,000 340,000 Marichal $ 68,000 20 3 % $ Step 2 Koufax $ 78,000 x 60 % $ 13,088 X Marichal $ 68,000 X 40 % O $ luc 11,412 x Reg A1 Req A2 Req B Liquidation expenses are estimated to be $27,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. First DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash $ 70,000Liabilities $ 43,000 Liquidation 27,000 expenses 35,000 X Marichal 100% Next Next 9,000 X Koufax 100 X % % All remaining cash 9,000 Drysdale 100 X % Koufax OOO 100 X % Marichal 100 X % Req A1 Req A2 Req B Assume that assets costing $86,000 are sold for $66,000. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal Payment of liabilities Payment of estimated liquidation expenses Cash available for distribution $ 48,000 66,000 $ 114,000 (43,000) (27,000) $ 44,000 Cash distribution to partners: Drysdale First Koufax Marichal Total Next Next Total $ 0 $ 0 $ 0 $ 0
