A and B are equal partners in AB, Ltd. A and B have 704(b) book capital balances as shown below. The only activity in AB, Ltd. is depreciation in the amount of $1,000 each year. AB, Ltd. specially allocates this depreciaton to A each year. AB, Ltd. has a qualified income offset provision to A in the amount of $1,500. Based on this information complete the table below for each of the years. Do not calculate years beyond the table.

	A		B
Beginning Capital	1500		1500
Year 1
CY Activity
Ending Capital
Year 2
CY Activity
Ending Capital
Year 3
CY Activity
Ending Capital
Year 4
CY Activity
Ending Capital