PROBLEM, IV (20%) eter Paul and Mary are partners. Their partnership agreement calls for distribution on income be done as follows I. Salaries for Peter, Paul and Mary are $10,000, $20.000 and $25,000 respectively. 10% interest on all average capital balances. Paul's was $40.000 andMary's was $50.000. 2, Peter's capital balance was $ 100,000, 3. The remainder was divided on a 2:1:1 ratio. REQUIRED: 1. Prepare a schedule of the distribution of income assuming that net income was $13000in 2018 Prepare a schedule of the distribution of "income" assuming that there was A net loss of $10,000 in 2018. 2. PROBLEM IV On December 31, 2018 the partnership of Earth. Wind and Fire decided to liquidate Their capital balances on that date were $50,000, s30.000 and $9,000 respectively. Gains and losses were allocated on a 2: 1:1 basis At the time of distribution the partnership had cash totaling $9,000; non-cash assets with a book value of $120.000 and accounts payable of $40,000. The non-cash assets were sold for $60.000 REQUIRED: Prepare a cash distribution at liquidation. PROBLEM VI (30%) AB CORP Wage Rate Hours Worked Mat Pensi FWT Union Dues YTD Pay Abel $119,000 $9,700 $80 $20 60 30 $700 $50 5% 5% Baker $20 1. Overtime is paid at a time and a half of the hourly rate past 40 hours 2. The pension sharing plan is a "matching" one where the employer matches the employee's contribution 3. Assume that the annual wage base limit for the FICA is $120,000. 4, Assume the FICA tax is 6%. 5. Assume that the Medicare tax is 1.5% on all wages 6. Assume that all unemployment taxes apply to only the first $10,000 of annual wages. 7, The Federal Unemployment Tax is 1%. 8, The State Unemployment Tax is 5% REQUIRED Prepare all necessary journal entries relating to the payroll for AB Corporation (You may round off where necessary to the nearest dollar)