3. Partnership income allocation Salary allowance and interest The partnership agreement of Kra, Lam, and Man provides for the division of net income as follows: Lam, who manages the partnership, is to receive a salary of $11,000 per year. Each partner is to be allowed interest at 10 percent on beginning capital. Remaining profits are to be divided equally. During 2011, Kra invested an additional $4,000 in the partnership. Lam withdrew $5,000, and Man withdrew $4,000. No other investments or withdrawals were made during 2011. On January 1, 2011, the capital balances were Kra, S65,000; Lam, $75,000; and Man, $70,000. Total capital at year-end was $252,000. REQUIRED: Prepare a statement of partners' capital for the year ended December 31, 2011