File Home Insert Draw Page Layout Formulas Data Review View Help EXPREP 1 X Cut A = Puste Copy Times New Roman - 11 BIU O A A 2 Wrap Text Merge & Center - General $ - 9 Format Painter Clipboard Alignment A60 X fx Ten years later, the partners Nora, Jack and Jill agree to liquidate the partnership F Information Nick & Nora agree to form a partnership on January 1, 2018. Nick has operated a business a sole proprietorship for a number of years and will contribute the net assets of his business to the partnership. The 11 appraised value of the net assets in Nick's business are given below. Cash Receivables Inventory Property, plant & equipment Accounts payable Accrued liabilities Mortgage payable Net Assets 10,000 15.000 30,000 85.000 (8,000) (22,000) (40,000) 70,000 22 Nora has significant experience in marketing and will 23 contribute cash in the amount of 55.000 25 Nick and Nora agree to begin operations with equal capital balances. The partnership agreement also indicates 26 that the bonus method will be used to account for any changes in partner ownership. The Articles of Partnership (the partnership agreement) provide that income and losses are to be allocated in 28 the following manner. 35,000 75,000 31 * Nick is to receive a salary of * Nora is to receive a salary of Interest is calculated on the beginning capital balances at a rate of The remaining gain or loss is to be allocated to Nick and Sheet1 11% Ready Type here to search A60 Format Painter Clipboard Font Alignment fx Ten years later, the partners Nora, Jack and Jill agree to liquidate A B C D E F * Nick is to receive a salary of $ 35,000 Nora is to receive a salary of $ 75,000 Interest is calculated on the beginning capital balances at a * rate of 11% * The remaining gain or loss is to be allocated to Nick and Nora in the ratio of 3:5 37 Each partner is provided a monthly draw of 1.600 39 Income for 2018 amounted to 260,000 41 On January 2, 2019. Jack joined the partnership by paying $220,000 to Nick and Nora directly. For this payment, Jack received a 42 partnership interest of 20% 65,000 44 The partnership agreement was revised to allow Jack * a salary of * Nick and Nora's salaries remain unchanged * Interest is allowed on all partner's beginning capital balances at the rate previously stated The remaining gain or loss is to be to Nick Nora, and Jack in the ratio of: 3:2:5 52 Each partner is provided a monthly draw of 1.650 54 Income for 2019 amounted to 285,000 Sheet1 Type here to search Review View Help EXPREP Wrap Text Merge & Center - $ utoSave " e Home Insert Draw Page Layout Formulas Data 2 X cut Times New Roman 11 AA == In Copy Format po 3 IUB A Clipboard - X fx A B C D E F balances at the rate previously stated The remaining gain or loss is to be to Nick Nora, and Jack in the ratio of: Alignment H mo 3:2:5 62 Each partner is provided a monthly draw of 1.650 54 Income for 2019 amounted to 285,000 55 On January 1, 2020, Nick decided to retire and sold his partnership interest directly to Jill. Nora and Jack agreed to the sale and admission of Jill into the partnership. The partnership agreement was changed to reflect Jill taking the place of Nick. All salary, interest and profit allocations previously provided to Nick now goes to 56 Jill. Jill is also allowed a monthly draw equal to Nick's prior draw. 57 58 Income for 2020 amounted to 335.000 60 Ten years later, the partners Nora, Jack and Jill agree to liquidate the partnership. Their partnership capital and Nora 365.000 Jack 286,000 295.000 July Liquidation expenses are expected to be 28.000 66 67 Required: Prepare a Pre-Distribution Plan to be used during the liquidation process. 70 Sheet1 Type here to search