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A PART A (30 points) Information Wind & Rambler agree to form a partnership on January 1, 2020. Wind has operated a business as a

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A PART A (30 points) Information Wind & Rambler agree to form a partnership on January 1, 2020. Wind has operated a business as a sole proprietorship for a number of years and will contribute the netics of his business to the partnership. The Appraised value of the net wets in Wind's busines are given below. 5 Receivables Inventory Property, plant & quipment, et Accounts payable Accrued liabilities Mortgage payable Net A 30,000 100,000 213,000 185.000 (85,000) (65.000) 140,000) 340.000 Rambler significant experience in marketing and wil contribute ca in the amount of 5 350.000 Wind & Rambler grote begin operation with qualepita halances The partnership agreement also indicates that the method wil bewed count for any changes in partner The Articles of Punithe pripreem) provide that come and she located in the following 31 Wiad is to salary of Randers te rivelay of Incre called on the beginning pills The remaining to be allowed Wind 5 5 10,000 65,000 12 33 14 90 36 17 Each plyw af 38 19 2020 5 1,600 5 250.000 4 Os ry 33021, Deaned the high of 5136.000 Way For the payment. De 4 21 There wa 45 salary of Wir waren und CY alebo LA pe The 1 50.000 11 5 Oy ... Mehr we were the prawo All werd A B c D F 40 G 25% s 50,000 41 On January 2, 2021, Donner joined the partnership by paying a total of $350,000 to Wind & Rambler directly. For this payment, Donner 42 received a partnership interest of 43 44 The partnership agreement was revised to allow Donner 45 a salary of 46 Wind's & Rambler's salaries remain unchanged 47 Interest is allowed on all partner's beginning capital balances 48 at the rate previously stated 49 The remaining gain or loss is to be split to Wind, Rambler & 50 Donner in the ratio of: 51 52 Each partner is provided a monthly draw of 53 54 Income for 2021 amounted to 55 5:32 S 2,000 S 230,000 $ On January 1, 2022, Wind decided to retire and sold his partnership interest directly to Macbelle. Rambler and Donner agreed to the sale and admission of Macbelle into the partnership. The partnership agreement was changed to reflect Macbelle taking the place of Wind. All salary, interest and profit allocations previously provided to Wind 56 now goes to Macbelle. Maebelle is also allowed a monthly draw equal to Wind's prior draw. 57 58 Income for 2022 amounted to 275,000 59 60 Required: 61 1 For each of the years 2020-2022. prepare a 62 Statement of Partnership Capital 63 b Schedule of Income Allocation 64 65 66 PART B (20 points) 67 Ten years later, the partners Ramblet, Donner and Macbelle agree to liquidate the partnership. Their partnership 68 capital and profitulos percentages at that time are shown below. 69 Rambler 70 s 800,000 Donner 71 450,000 Macbelle 72 950.000 73 Liquidation expenses are expected to be 74 32.000 75 Required: Prepare a Pre-Distribution Plan to be used during the liquidation process 76 72 78 79 80 A PART A (30 points) Information Wind & Rambler agree to form a partnership on January 1, 2020. Wind has operated a business as a sole proprietorship for a number of years and will contribute the netics of his business to the partnership. The Appraised value of the net wets in Wind's busines are given below. 5 Receivables Inventory Property, plant & quipment, et Accounts payable Accrued liabilities Mortgage payable Net A 30,000 100,000 213,000 185.000 (85,000) (65.000) 140,000) 340.000 Rambler significant experience in marketing and wil contribute ca in the amount of 5 350.000 Wind & Rambler grote begin operation with qualepita halances The partnership agreement also indicates that the method wil bewed count for any changes in partner The Articles of Punithe pripreem) provide that come and she located in the following 31 Wiad is to salary of Randers te rivelay of Incre called on the beginning pills The remaining to be allowed Wind 5 5 10,000 65,000 12 33 14 90 36 17 Each plyw af 38 19 2020 5 1,600 5 250.000 4 Os ry 33021, Deaned the high of 5136.000 Way For the payment. De 4 21 There wa 45 salary of Wir waren und CY alebo LA pe The 1 50.000 11 5 Oy ... Mehr we were the prawo All werd A B c D F 40 G 25% s 50,000 41 On January 2, 2021, Donner joined the partnership by paying a total of $350,000 to Wind & Rambler directly. For this payment, Donner 42 received a partnership interest of 43 44 The partnership agreement was revised to allow Donner 45 a salary of 46 Wind's & Rambler's salaries remain unchanged 47 Interest is allowed on all partner's beginning capital balances 48 at the rate previously stated 49 The remaining gain or loss is to be split to Wind, Rambler & 50 Donner in the ratio of: 51 52 Each partner is provided a monthly draw of 53 54 Income for 2021 amounted to 55 5:32 S 2,000 S 230,000 $ On January 1, 2022, Wind decided to retire and sold his partnership interest directly to Macbelle. Rambler and Donner agreed to the sale and admission of Macbelle into the partnership. The partnership agreement was changed to reflect Macbelle taking the place of Wind. All salary, interest and profit allocations previously provided to Wind 56 now goes to Macbelle. Maebelle is also allowed a monthly draw equal to Wind's prior draw. 57 58 Income for 2022 amounted to 275,000 59 60 Required: 61 1 For each of the years 2020-2022. prepare a 62 Statement of Partnership Capital 63 b Schedule of Income Allocation 64 65 66 PART B (20 points) 67 Ten years later, the partners Ramblet, Donner and Macbelle agree to liquidate the partnership. Their partnership 68 capital and profitulos percentages at that time are shown below. 69 Rambler 70 s 800,000 Donner 71 450,000 Macbelle 72 950.000 73 Liquidation expenses are expected to be 74 32.000 75 Required: Prepare a Pre-Distribution Plan to be used during the liquidation process 76 72 78 79 80

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