Amy and Mitchel form a partnership in which they agree to share profits and losses equally. At the beginning of the year, Amys tax basis in her partnership interest is $100,000. The financial records of the partnership include the following:

Revenues $900,000 Depreciation 200,000 Interest expense 100,000 Wages to employees 200,000 LTCG 4,000 Charitable contribution 6,000 Mortgage debt incurred by the Partnership during the year 140,000 Distribution to Amy 20,000

a. Compute the non-separately stated income of the partnership.

b. What are the separately stated items?

c. Calculate Amys A/B in her partnership interest at the end of the year. (Remember to take the nontaxable distribution immediately after the positive adjustments to the basis).