E 16-19 Partnership income allocation-Salary allowance and Interest The partnership agreement of Kray, Lam, and Mann provides for the division of net income as follows 1. Lam, who manages the partnership, is to receive a salary of $11,000 per year. 2. Each partner is to be allowed interest at 10% on beginning capital 3. Remaining profits are to be divided equally During 2011, Kray invested an additional $4,000 in the partnership. Lam withdrew $5,000, and Mann withdrew $4,000. No other investments or withdrawals were made during 2011. On January 1, 2011, the capital balances were Kray, $65,000; Lam, $75,000, and Mann, $70,000. Total capital at year end was $252,000. REQUIRED: Prepare a statement of partners' capital for the year ended December 31, 2011.