Cassandraisa10%partnerinC&C,Ltd.Herbasisintheintereston January 1, 2019 is$60,000 (including $30,000 of liabilities, which is her share of the partnership nonrecourse debt). At the close of the 2019 tax year, C&C, Ltd.'s Schedule K reflected a $4,000,000 loss. The following transactions also occurred in 2019:

On February 12^th, Cassandra took a $130,000 cash distribution from C&C, Ltd.

On July 15^th, C&C entered into a risky financing arrangement, borrowing $2,500,000. As part of the agreement, the lender required all partners to assume personal liability for the loan in the event C&C is unable to satisfy the repayment terms.

Still suffering cash flow issues, C&C was forced to sell one of its properties, resulting in a long-term capital gain of $2,000,000.

In addition, Cassandraholds an interest inMNOP, LP., from which she received $275,000 in passive activity income for the 2019 tax year.

1.What is Cassandra's basis in her C&C, Ltd. Partnership interest at the end of 2019? Please show the computation.

2.What is Cassandra's share of C&C's loss and howmuch, if any,ofthelossfromC&CmayCassandradeduct in 2019? Under which IRC provisions, or for what reasons, are the remaining losses suspended? Please show the computation.