Liquidating Partnerships Prior to liquidating their partnership, Ellis and Dunn had capital accounts of $24,000 and $44,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $60,000. The partnership had $2,000 of liabilities. Ellis and Dunn share income and losses equally. Determine the amount received by Ellis as a final distribution from liquidation of the partnership. $ 46,000 Feedback Check My Work 1. Begin with Ellis equity prior to liquidation. 2. Adjust the equity for the gain or loss on the sale of the assets. 3. Allocate the gain/loss to partner capital accounts based on the income-sharing ratio. 4. Add beginning equity plus allocated gain/loss to determine liquidation distribution. Partner Bonus Blair has a capital balance of $113,000 after adjusting assets to fair market value. Rojas contributes $61,000 to receive a 35% interest in a new partnership with Blair. Determine the amount and recipient of the partner bonus. Amount of bonus Recipient of bonus Dividing Partnership Net Income Required: Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Jack of $117,150. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Stevens, 1:2. Jack and Stevens had $45,000 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $213,000. How much is distributed to Jack and Stevens? Note: Compute partnership share. Jack: $ 151,800 X Stevens: $68,400 X