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

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

Cash $ 54,000 Liabilities $ 59,500
Noncash assets 294,000 Drysdale, loan 27,500
Drysdale, capital (50%) 97,000
Koufax, capital (30%) 87,000
Marichal, capital (20%) 77,000

Liquidation expenses are estimated to be $14,000. Prepare a predistribution schedule to guide the distribution of cash.

Assume that assets costing $92,000 are sold for $69,000. How is the available cash to be divided?

Assume that assets costing $92,000 are sold for $69,000. Prepare loss allocation table.

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

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