1 John and Mary are equal partnership in a partnership. John's beginning basis is 40,000 and Mary's beginning basis is 60,000 Sales 400,000 Cost of Sales 100,000 Long term capital gain 4,000 Short term capital loss -4,000 Dividend income 2,000 Salaries 50,000 Rent Expense 25,000 Interest income Depreciation 5,000 30,000 Section 179 expense 25,000 Distribution to Mary 30,000 Medical expenses for John paid by partnership 20,000 O 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary