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