The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Total liabilities and capital Cash Noncash assets. Total assets Req A1 Required: 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 $21,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $80,000 are sold for $63,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Partner Capital Balance Step 1 Drysdale Koufax Marichal $ 42,000 234,000 Req A2 Step 2 $ 276,000 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. Koufax Marichal Req B Loss Allocation % % % $ 46,500 22,500 79,000 69,000 59,000 $ 276,000 % % Maximum Loss That Can Be Absorbed Req A1 First Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. DRYSDALE, KOUFAX, AND MARICHAL Distribution of Available Cash Next Next Req A2 All remaining cash Req B Liabilities Liquidation expenses < Req A1 % % % % % % Req B > Req A1 Req A2 Assume that assets costing $80,000 are sold for $63,000. How is the available cash to be divided? Cash available for distribution: Beginning cash balance Sale of noncash assets Subtotal First Next Next Req B Payment of liabilities Payment of estimated liquidation expenses Cash available for distribution Cash distribution to partners: Drysdale Total Koufax Marichal Total