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 $ 48,500 16,000 Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) 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? 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. Partner Capital Balance Loss Allocation Maximum Loss That Can Be Absorbed Step 1 Drysdale $ 90,500 50 % $ 181,000 Koufax $ 64,500 30 % $ 215,000 Marichal $ 54,500 20 % $ 272,500 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 Partner Capital Balance Loss Allocation That Can Be Absorbed Step 1 Drysdale $ 90,500 50 % $ 181,000 Koufax $ 64,500 30 % $ 215,000 Marichal $ 54,500 20 % $ 272,500 Step 2 Koufax Marichal (60 % 40 % Req A1 Req A2 Req 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 First Next Next All remaining cash Distribution of Available Cash Liabilities Liquidation expenses % % % % % % Req A1 Req A2 Req 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 $ 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