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 $56,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable $ 52,000 Office equipment (net) 82,000 72,000 Liabilities Butler, loan Building (net) Land Total assets 220,000 210,000 Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) $ 192,000 52,000 160,000 52,000 180,000 $ 636,000 Total liabilities and capital $ 636,000 Prepare a predistribution plan for this partnership. Osman, Ward, Butler, Loan and Capital Capital Capital Beginning balances Assumed loss of Schedule 1 Step one balances $ 0 $ 0 $ 0 Assumed loss of Schedule 2 Step two balances 0 $ 0