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

Cash	$	36,000	Liabilities	$	50,000
Noncash assets		204,000	Drysdale, loan		10,000
			Drysdale, capital (50%)		70,000
			Koufax, capital (30%)		60,000
			Marichal, capital (20%)		50,000

Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash.

Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?

Assume that assets costing $74,000 are sold for $60,000. Prepare loss allocation table.

Partner	Capital Balance	Loss Allocation		Maximum Loss That Can Be Absorbed
Schedule 1
Drysdale			%
Koufax			%
Marichal			%
Schedule 2
Koufax			%
Marichal			%

Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash.

DRYSLADE, KOUFAX, AND MARICHAL
Distribution of Available Cash
First		Liabilities
		Liquidation expenses
Next				%
Next				%
				%
All remaining cash				%
				%
				%

Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?

		Drysdale	Koufax	Marichal
Reported balances
Assumed loss
Schedule 1
Adjusted balances
Assumed loss
Schedule 2
Adjusted balances