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

Required:

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 $$29,000.$ Prepare a predistribution schedule to guide the distribution of cash.

b$.$ Assume that assets costing $$88,000$ are sold for $$67,000.$ How is the available cash to be divided?

Complete this question by entering your answers in the tabs below.

Req 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 $2.$