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 $52,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash	$	48,000		Liabilities	$	188,000
Accounts receivable		78,000		Butler, loan		48,000
Office equipment (net)		68,000		Butler, capital (25%)		140,000
Building (net)		200,000		Osman, capital (25%)		48,000
Land		190,000		Ward, capital (50%)		160,000
Total assets	$	584,000		Total liabilities and capital	$	584,000

	Butler, Loan and Capital	Osman, Capital	Ward, Capital
Beginning balances
Assumed loss of Schedule 1
Step one balances	$0	$0	$0
Assumed loss of Schedule 2
Step two balances	$0	$0	$0