The partnership of Susan, Tim, James, and Michelle was formed several years ago as a law firm. Several partners have undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

Assets			Liabilities and Capital
Cash	$	33,000	Liabilities	$	70,000
Accounts receivable		100,000	James, loan		53,000
Inventory		119,000	Susan, capital (30%)		147,000
Land		94,000	Tim, capital (10%)		106,000
Building and equipment (net)		177,000	James, capital (20%)		83,000
			Michelle, capital (40%)		64,000
Total assets	$	523,000	Total liabilities and capital	$	523,000

When the liquidation commenced, liquidation expenses of $15,000 were anticipated as being necessary to dispose of all property.

Required:

Prepare a pre-distribution plan for this partnership