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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 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 $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash $ 44,000 Liabilities $ 184,000
Accounts receivable 74,000 Butler, loan 44,000
Office equipment (net) 64,000 Butler, capital (25%) 120,000
Building (net) 180,000 Osman, capital (25%) 44,000
Land 170,000 Ward, capital (50%) 140,000
Total assets $ 532,000 Total liabilities and capital $ 532,000

Prepare a predistribution plan for this partnership.

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