An examination of the MO Partnership's tax books provides the following information for the current year:

Operation(ordinary) income before guaranteed payments $300,000

Qualified Dividend Income $8,000

Guaranteed payment to Megan $ 50,000

Cash distributions to each partner (two partners) $ 30,000

Tax Exempt Interest $ 5,000

Interest paid to purchase the tax exempt bonds $ 2,000

Charitable contributions made by partnership $ 10,000

Increase in partnership liabilities during the year $ 40,000

Meagan is a 40% partner in partnership capital, profits, and losses. Assume the adjusted basis of her partnership interest is $100,000 at the beginning of the year.

A. What is Meagan's adjusted basis for the partnership interest at the end of the year?

B. How much income must Meagan report on her tax return for the current year?