The partnership agreement of Kray, Lam, and Mann 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% on beginning capital.

3. Remaining profits are to be divided equally.

During 2011, Kray invested an additional $4,000 in the partnership. Lam withdrew $5,000, and Mann withdrew $4,000. No other investments or withdrawals were made during 2011. On January 1, 2011, the capital balances were Kray, $65,000; Lam, $75,000; and Mann, $70,000. Total capital at year end was $252,000.

REQUIRED: Prepare a statement of partners’ capital for the year ended December 31, 2011.