The partnership of Angel Investor Associates began operations on January 1, 2005, with contributions from two partners as follows:

Jan Strous ......$31,500

Cara Wright ...... 58,500

Strous and Wright agree to an income-sharing ratio equal to their capital contribution ratio.

The following additional partner transactions took place during the year:

1. In late March, Michael Black is admitted to the partnership by contributing $30,000 cash for a 20% interest. Assets were adjusted downwards by $10,000 prior to admitting Black.

2. Net income of $172,000 was earned in 2006. In addition, Jan Strous received a salary allowance of $12,000 for the year.

3. The partners withdrawals are equal to half of the increase in their capital balances resulting from net income.

Prepare a statement of partnership equity for the year ended December 31, 2006.