The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 54,000 294,000 Liabilities Drysdale, loan $ 59,500 27,500 Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) 97,000 87,000 77,000 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 $14,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $92,000 are sold for $69,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Req 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. Maximum Loss That Can Be Partner Capital Balance Loss Allocation Absorbed Step 1 Drysdale $ 124,500 50 %6 S 249,000 Koufax S 87,000 30 % $ 290,000 Marichal S 77,000 20 % S 385,000 Step 2 Koufax $ 12,300 60 % S 20,500 Marichal S 27,200 40 %6 $ 68,000 < Req A1 Req A2 > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Liquidation expenses are estimated to be $14,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. First DRY SDALE, KOUFAX, AND MARICHAL Distribution of Available Cash Liabilities Liquidation expenses Next Next All remaining cash < Req A1 96 *||||| Req B > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Assume that assets costing $92,000 are sold for $69,000. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal Payment of liabilities $ 0 Payment of estimated liquidation expenses Cash available for distribution $ 0 Cash distribution to partners: Drysdale Koufax Marichal Total First Next Next Total $ 0 $ 0 $ 0 $ 0 < Req A2 Req B >