Jack is a 20% partner in a service partnership. His outside basis is $80,000 on January 1st of 2019. Included in that amount is a $15,000 share of partnership liabilities. His capital account is $70,000 on January 1st of 2019. During the year, Jack is allocated the following amounts: Long-term capital gain: $2,000 Ordinary income of the partnership: $10,000 A guaranteed payment: $60,000 At the end of the year, the partnership relieves him of $5,000 of partnership liabilities and gives him a cash distribution of $40,000. These payments are intended as a partial liquidation of his partnership interest.

1. What is the amount of Jack's outside basis after all of these events?

2. What is the amount of Jack's capital account after all of these events?