In 2022, Oscar and Andy pooled their resources to form Feline\&Canine Partnership. They will both work actively in the business and they have agreed to share profits and losses 50-50. To form this partnership, Oscar contributed manufacturing equipment with a FMV of $1,000,000 and a basis of $100,000. Andy contributed $400,000 of cash and land with a fair market value of $800,000 and a basis of $500,000. The equipment contributed by Oscar was not encumbered by debt. The land contributed by Andy had a $200,000 mortgage (qualified nonrecourse debt) which was assumed by FELINE\&CANINE Partnership. b. During 2022, FELINE\&CANINE Partnership had non-separately stated loss (ordinary operating loss) of $(80,000), a long-term capital gain of $20,000. In 2022 , they refinanced the $200,000 mortgage and now have a total of $250,000 of qualified non-recourse debt. 1. What items of income will Oscar report on his 1040 return? 2. What is Oscar's outside basis in his partnership interest at the end of 2022