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

Cash	$	43,000	Liabilities	$	45,500
Noncash assets		239,000	Drysdale, loan		25,000
			Drysdale, capital (50%)		80,500
			Koufax, capital (30%)		70,500
			Marichal, capital (20%)		60,500

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 $22,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well.
3. b. Assume that assets costing $81,000 are sold for $63,500. How is the available cash to be divided?