The partnership agreement of Kra, Lam, and Man provides for the division of net income as follows:

1. Lam, who manages the partnership, is to receive a salary of $11,000 per year.

2. Each partner is to be allowed interest at 10 percent on beginning capital.

3. Remaining profits are to be divided equally.

During 2016, Kra invested an additional $4,000 in the partnership. Lam withdrew $5,000, and Man withdrew $4,000. No other investments or withdrawals were made during 2016. On January 1, 2016, the capital balances were Kra, $65,000; Lam, $75,000; and Man, $70,000. Total capital at year-end was $252,000.

REQUIRED:

Prepare a statement of partners' capital for the year ended December 31, 2016.