The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 59,000 319,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 54,500 40,000 184,500 94,500 84,500 2-1. 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 0-2. 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. b. Assume that assets costing $97,000 are sold for $71,500. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Reg 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. Maximum Partner Capital Loss Loss That Balance Allocation Can Be Absorbed Step 1 144,500 94,500 84,500 $ s 50 % 30 % 20 % $ $ 289,000 315.000 422,500 $ Drysdale Koufax Marichal Step 2 Koufax Marichal S os $ 7.800 26,700 60 40 13,000 66.250 $ 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 First Liabilities Liquidation expenses Next Next sa se All remaining cash % % % Req A1 Req A2 ReqB 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 of liabilities Payment of estimated liquidation expenses Cash available for distribution $289.000 315,000 X $604,000 $604,000 Koufax Marichal Total Cash distribution to partners Drysdale First Next Next Tota