1. Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2021, the adjusted basis in her YZ interest was $95,000. For 2021, YZ generated a $210,000 business loss, earned $14,600 dividend and interest income on its investments, and recognized a $6,200 capital gain. YZ made no distributions to its partners and had no debt. In 2022, YZ generated $7,000 ordinary business income and $18,000 dividend and interest income. The partnership made no distributions. At the end of the year, YZ had $21,000 debt.

How much partnership income will Zelda report on her 2022 return? Assume the excess business loss limitation does not apply.

2. Rochelle is a limited partner in Megawatt Partnership. For 2022, her schedule K-1 from the partnership reported the following share of partnership items:

Ordinary income	$ 39,600
Section 1231 loss	(3,100)
Nondeductible expense	2,085
Cash distribution	6,300

Assume that Rochelles marginal tax rate is 35 percent. Calculate her 2022 after-tax cash flow as a result of her interest in Megawatt.