Bill, Jay, and Mary are all one-third partners in the capital and profits of North general partnership. In addition to their normal share of the partnership's annual income, Bill and Jay receive annual guaranteed payments of $7,000 to compensate them for additional services they provide. North's income statement for the current year reflects the following revenues and expenses: In addition, North owed creditors $120,000 at the beginning of the year but managed to pay down its debts to $90,000 by the end of the year. All partnership debt is allocated equally among the partners. Finally, Bill, Jay, and Mary had a tax basis of $80,000 in their interests at the beginning of the year. Answer the following questions. Clearly show your work and label your answers. a. What items of income, loss and deduction does each partner report on their individual tax returns as a result of the operations of the partnership? Be specific and clearly list the amount and character of each item. b. What tax basis do the partners have in their partnership interests at the end of the year? Be specific and clearly show each adjustment to basis. c. Assume that Bill began the year with a tax basis of $10,000, and Jay and Mary began the year with a tax basis of $30,000. The partnership managed to pay the $120,000 debt in full on the last day of the year (the partnership had no liabilities at the end of the year). How much gain will the partners recognize when the debt is paid off? What tax basis do the partners have in their partnership interests at the end of the year? Be specific and clearly show each adjustment to basis