The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: 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 $2.$ Req A$1$

Req 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. Req A$1$

Req B

Assume that assets costing $$98,000$ are sold for $$72,000.$ How is the available cash to be divided?

Cash distribution to partners:

Cash $ $60,000$ Liabilities $ $56,000$

Noncash assets $324,000$ Drysdale, loan $40,000$

Drysdale, capital $(50\%)106,000$

Koufax, capital $(30\%)96,000$

Marichal, capital $(20\%)86,000$

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?