The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 58,000 314,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 55,500 37,500 103,000 93,000 83,000 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 $18,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $96,000 are sold for $71,000. How is the available cash to be divided? Reg A1 Reg A2 ReqB Determine the maximum loss that can be absorbed in Step 1. TH next maximum loss that can be absorbed in Step 2. Maximum Partner Capital Loss Loss That Balance Allocation Can Be Absorbed Step 1 Drysdale S 140,500 50 % S 281,000 Koufax 93,000 30 % S 310,000 Marichal S 83,000 20 % $ 415,000 Step 2 Koufax $ 8,700 60 % S 14,500 Marichal S 26,800 40 % S 67,000 $ Reg A1 Reg A2 Req B Liquidation expenses are estimated to be $18,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. DRY SDALE, KOUFAX, AND MARICHAL Distribution of Available Cash First $ 73,500 Liabilities $ 55,500 Liquidation 18,000 expenses Next 21.000 Marichal 100 Next 14,500 Koufax 60 996 Marichal 40 All remaining 20.000 X Koufax 30 996 cash Marichal 20 996 Drysdale 50 %6 OOOOOO % Reg A1 Reg A2 Reg B Assume that assets costing $95,000 are sold for $71,000. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal Payment of liabilities Payment of estimated liquidation expenses Cash available for distribution IS 0 IS 0 Cash distribution to partners: Drysdale Koufax Marichal Total First Next Next Total IS lo 0 IS 0 IS 0 The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 58,000 314,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 55,500 37,500 103,000 93,000 83,000 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 $18,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $96,000 are sold for $71,000. How is the available cash to be divided? Reg A1 Reg A2 ReqB Determine the maximum loss that can be absorbed in Step 1. TH next maximum loss that can be absorbed in Step 2. Maximum Partner Capital Loss Loss That Balance Allocation Can Be Absorbed Step 1 Drysdale S 140,500 50 % S 281,000 Koufax 93,000 30 % S 310,000 Marichal S 83,000 20 % $ 415,000 Step 2 Koufax $ 8,700 60 % S 14,500 Marichal S 26,800 40 % S 67,000 $ Reg A1 Reg A2 Req B Liquidation expenses are estimated to be $18,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. DRY SDALE, KOUFAX, AND MARICHAL Distribution of Available Cash First $ 73,500 Liabilities $ 55,500 Liquidation 18,000 expenses Next 21.000 Marichal 100 Next 14,500 Koufax 60 996 Marichal 40 All remaining 20.000 X Koufax 30 996 cash Marichal 20 996 Drysdale 50 %6 OOOOOO % Reg A1 Reg A2 Reg B Assume that assets costing $95,000 are sold for $71,000. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal Payment of liabilities Payment of estimated liquidation expenses Cash available for distribution IS 0 IS 0 Cash distribution to partners: Drysdale Koufax Marichal Total First Next Next Total IS lo 0 IS 0 IS 0