The partnership of Butler, Osman, and Ward was formed several years 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 $35,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash	$	31,000		Liabilities	$	171,000
Accounts receivable		61,000		Butler, loan		31,000
Office equipment (net)		51,000		Butler, capital (25%)		55,000
Building (net)		115,000		Osman, capital (25%)		31,000
Land		105,000		Ward, capital (50%)		75,000
Total assets	$	363,000		Total liabilities and capital	$	363,000

Prepare a predistribution plan for this partnership.

	Butler, Loan and Capital	Osman, Capital	Ward, Capital
Beginning balances
Loss
Step one balances
Loss
Step two balances