Q.4

please, you should be as clear as possible.

Required Information [The following information applies to the questions displayed below.) The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $37.000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total asseto $ 33,000 63,000 53,000 125,000 115,000 $ 389,000 Liabilities Butler, loan Butler, capital (258) Osman, capital (258) Ward, capital (508) Total liabilities and capital $ 173,000 33,000 65,000 33,000 85,000 $ 389,000 Prepare a predistribution plan for this partnership Butler, Loan and Capital Osman, Capital Ward, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0