Ziggy, Jughead, Alison and Bib have been carrying on a property business in partnership from 2003. Alison has decided to leave the partnership at the end of the 2021. The partners agree that to make things easier, they will prepare the partnerships tax return on basis that Alison resigned from the partnership at the end of the previous financial year (few months earlier). Required: What are the consequences of this agreement? Assume also that Alison will receive a payment of $3.5m in respect of her interest in the work in progress of the partnership. How is such payment treated?