Falcon buys a $40\%$ general partnership interest in Carrot Partnership for $$2,500$ on

January $1.$ During Year $1,$ Carrot Pshp incurs $$5,000$ of debt and a $$6,000$ loss. In Year

$2,$ Carrot Pshp pays off all of the debt and incurs a loss of $$2,000.$

What is Falcon's basis in Year $1?$

What is Falcon's basis in Year $2?$