The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 56,000 304,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 57,500 32,500 100,000 90,000 80,000 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 $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $94,000 are sold for $70,000. How is the available cash to be divided? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Reg 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 $ % $ 265,000 $ Step 1 Drysdale Koufax Marichal Step 2 Koufax Marichal 132,50050 90,00030 80,00020 $ % % 300,000 400,000 $ $ $ % $ 17.500 10,500 60 27,000~ 40 $ % $ 67,500 Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. First DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash $ 73,500 Liabilities $ 57,500 Liquidation 16,000 expenses 20,000 100 16,000 X 60 Next % Next % 40 % All remaining cash 16,000 50 % 30 % 20 % Req A1 Req A2 Req B Assume that assets costing $94,000 are sold for $70,000. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets $ 56,000 Subtotal Payment of liabilities Payment of estimated liquidation expenses Cash available for distribution 70,000 $ 126,000 57,500 16,000 $ 52,500 Cash distribution to partners: Drysdale First $ 132,500 Next 125,000 $ 7,500 Koufax Marichal Total $ $ 90,000 $ 80,000 X 302,500 $ 75,000 X 50,000 25,000 X 15,000 X 30,000 X 52,500 X $ $ $160,000 180,000 380,000 Next Total $ 265,000