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

Cash	$	61,000	Liabilities	$	55,000
Noncash assets		329,000	Drysdale, loan		42,500
			Drysdale, capital (50%)		107,500
			Koufax, capital (30%)		97,500
			Marichal, capital (20%)		87,500

1. 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.
2. a-2. Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well.
3. b. Assume that assets costing $99,000 are sold for $72,500. 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 Koufax % % Marichal % Step 2 Koufax % Marichal % Reg A1 Req A2 Reg A1 Req A2 Reg B Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. HERR HERRER HERRER HERRER DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash Liabilities First Liquidation expenses Next % Next % % All remaining cash % % %