Required information Problem 10-33 (Algo) (LO 15-2, 15-7) [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 $36,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable $ 32,000 62,000 Office equipment (net) 52,000 Building (net) Land Total assets 120,000 110,000 $ 376,000 Problem 10-33 Part A Prepare a predistribution plan for this partnership. Liabilities Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital Osman, Butler, Loan and Capital Beginning balances $ Capital 92,000 $ 32,000 $ 80,000 Ward, Capital Assumed loss of Schedule 1 Step one balances $ 92,000 $ 32,000 $ 80,000 Assumed loss of Schedule 2 Step two balances $ 92,000 $ 32,000 $ 80,000 $ 172,000 32,000 60,000 32,000 80,000 $ 376,000