The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 60,000 324,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 56,000 40,000 106,000 96,000 86,000 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 $20,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $98,000 are sold for $72,000. How is the available cash to be divided? Partner Capital Balance Loss Allocation Maximum Loss That Can Be Absorbed Step 1 Drysdale Koufax Marichal Step 2 Koufax Marichal % % % % % DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash Liabilities Liquidation expenses First Next Next % % % % All remaining cash % % Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal Payment of liabilities Payment of estimated liquidation expenses Cash available for distribution $ 0 $ 0 Koufax Marichal Total Cash distribution to partners: Drysdale First Next Next Total $ $ 0 $ 0 $ 0 $ 0