Forrest, Jennie, and Dan each contribute $150,000 cash to the newly formed Alphabet Partnership. The partnership purchases equipment for $450,000. The equipment is to be depreciated using the straight line method over 5 years. All depreciation is allocated to Forrest; all other items are allocated equally amongst the 3 partners. Capital accounts are properly maintained under IRC 704(b). The partnership agreement provides that liquidating distributions will be made in accordance with the partners capital accounts. Jennie and Dan are not required to restore deficit capital accounts; Forrest agrees to a limited deficit restoration agreement of $100,000. The partnership agreement otherwise includes a qualified income offset provision. Income before depreciation is $30,000 each year.

1- How are items allocated amongst Forrest, Jennie, and Dan in each of the years 1-4?

2- What are the partners ending capital accounts at the end of each year?