INCOME STATEMENT

For the Year Ended December 31, 2021

Tax Book

Consulting fees 1,680,000 1,680,000

Tax-exempt interest 0 2,400

Interest income on bank accounts 16,400 16,400

Total income 1,696,400 1,698,800

Organization expenses 5,707 15,600

Guaranteed payments/Officer salaries 650,000 650,000

Salaries and wages 240,000 40,000

Rent 76,300 76,300

Utilities 12,000 12,000

Advertising 30,000 30,000

Repairs 1,000 1,000

Taxes 11,000 11,000

Employee benefits 2,000 2,000

Interest 10,000 10,000

Office supplies 7,500 7,500

Depreciation: Sec.179/MACRS 75,200 30,400

Total expenses 1,120,707 1,085,800

Net income before charitable contributions 575,693 613,000

Charitable contributions 52,569 70,000

Net income 23,124 543,000

Distributions 500,000 500,000

Suppose the entity is a partnership with two equal partners.

Each partners beginning basis is $0. What is the partners ending basis?