On December 31, 2016, the Slamet, Basuki, and Baskoro partnership’s capital balances after closing are $125,000, $75,000, and $100,000, respectively. Net income for 2016 is $30,000 and it is divided as follows: 40 percent to Slamet, 25 percent to Basuki, and 35 percent to Baskoro. On January 1, 2017, the partners agree to liquidate the business. However, they discover that the year-end inventory is undervalued by $20,000, and year-end equipment, net of accumulated depreciation, is overvalued by $10,000.