The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 39,000 219,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (308) Marichal, capital (208) $ 48,500 16,000 74,500 64,500 54,500 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 $77,000 are sold for $61,500. How is the available cash to be divided? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A1 Req A2 ReqB Assume that assets costing $77,000 are sold for $61,500. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Req A1 Reg A2 ReqB 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 Marichal Step 2 Koufax $ $ $ 90,500 64,500 54,500 50% $ 30 % $ 20% 181,000 215,000 272,500 $ S $ 19,800 60 % 24,700 40 % 33,000 61,750 x Marichal S $ Return to queston Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B 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. DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash First $ 66,500 Liabilities $ 48,500 Liquidation 18,000 Next 11,500 Marichal 100 % 33,000 Koufax % Marichal All remaining 147,000 Koufax 30 % Marichal Drysdale expenses Next 60 40 % > cash > 20 % 50 % Req A1 Req A2 Reg B Assume that assets costing $77,000 are sold for $61,500. 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 $ 39,000 61,500 $100,500 (48,500) (18,000) $ 34,000 Cash distribution to partners: Drysdale First $ 0 Next 0 Next $ 0X Total S 0 >> Koufax Marichal $ 0$ 11,500 $ 13,500 9,000 13,500 9,000 $ 27,000 $ 29,500 Total $ 11,500 22,500 22,500 $ 56,500
