Question: A and B are equal partners in AB, Ltd. A and B have capital balances as shown below. The only activity in AB, Ltd. is

A and B are equal partners in AB, Ltd. A and B have capital balances as shown below. The only activity in AB, Ltd. is depreciation in the amount of $1,000 each year. AB, Ltd. specially allocates this depreciation to A each year. AB, Ltd. has a qualified income offset provision to A in the amount of $1,500. Based on this information complete the table below for each of the years. Do not calculate years beyond the table.
 AB
Beginning Capital$1,500 $1,500 
Year 1  
Current Year Activity  
Ending Capital  
   
Year 2  
Current Year Activity  
Ending Capital  
   
Year 3  
Current Year Activity  
Ending Capital  
   
Year 4  
Current Year Activity  
Ending Capital  

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