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 $38,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash: $34,000 Liabilities: $174,000 Accounts receivable: 64,000 Butler, loan: 34,000 Office equipment (net): 54,000 Butler, capital (25%): 70,000 Building (net): 130,000 Osman, capital: (25%) 34,000 Land: 120,000 Ward, capital: (50%) 90,000 Total assets: $402,000 Total liabilities and capital: $402,000

Prepare a predistribution plan for this partnership.