The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:

Cash	$	59,000	Liabilities	$	54,500
Noncash assets		319,000	Drysdale, loan		40,000
			Drysdale, capital (50%)		104,500
			Koufax, capital (30%)		94,500
			Marichal, capital (20%)		84,500

1. 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.
2. a-2. Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well.
3. b. Assume that assets costing $97,000 are sold for $71,500. How is the available cash to be divided?

Assume that assets costing $97,000 are sold for $71,500. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal Payment liabilities Payment of estimated liquidation expenses Cash available for distribution $ 0 $ 0 Sash distribution to partners: Drysdale First Koufax Marichal Total Next Vext Total $ 0 $ 0 $ 0 $ Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash Liabilities Liquidation expenses First Next Next % % All remaining cash Reg A1 Req A2 Req 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 $ % $ S 144,500 50 94,500 30 84,500 20 % $ 289,000 315,000 422.500 Marichal $ % Step 2 Koufax Marichal S % 173,400 60 40