Five years ago, Farley Walton purchased a 30% interest in Oak Motte Partners, a real estate development partnership. He paid $50,000 for a 30% interest in capital, profits and losses. This year, at the end of the year, Farley sold his interest in the partnership for $250,000 cash to an unrelated buyer. The following table summarizes Farley’s distributive share of partnership profits and losses, as well as distributions received and additional capital contributions made by Farley over the five year period:

* The Year 1 capital contribution represents Farley’s initial contribution to acquire his interest in the partnership

Assume that Farley has not retained sufficient records to support the information summarized in the above table. He has not retained copies of Schedules K-1 received from the partnership over the years, and has been haphazard at best in keeping records of payments made to or received from the partnership. Farley’s tax preparer, however, has a copy of the Schedule K-1 received this year.

What will be the balance in Farley’s capital account at the end of Year 5, as reported on Schedule K-1 received for that year? (Assume the capital account has been properly maintained over the entire period).

What is Farley’s tax basis in his partnership interest at the end of Year 5?