Jiang and Jackson are equal partners in J&J Partnership. Both partners start Year $1$ with an outside basis of $$10,000.$ Using the following information below, determine $(1)$ the recognized income or loss for each partner and $(2)$ the end$-$of$-$year outside basis for each partner:

If an amount is zero, enter $"0".$

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$1.$ Year $1$: J&J generates $$6,000$ of ordinary business income, allocates total municipal bond interest of $$300$ and allocates non$-$deductible fines of $$100.$

Description Amount

Recognized income or loss $fill in the blank $87$b$691046$fb$6$fff$\_1$

End$-$of$-$year outside basis $fill in the blank $87$b$691046$fb$6$fff$\_2$

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$2.$ Year $2$: J&J generates a $$20,000$ loss that includes a deduction for a guaranteed payment of $$2,000$ to Jiang. Both Jiang and Jackson receive a cash distribution from the partnership of $$7,100$ each.

Description Amount

Recognized income or loss $fill in the blank $2$ced$79$fbefaefd$4\_1$

End$-$of$-$year outside basis $fill in the blank $2$ced$79$fbefaefd$4\_2$

Question Content Area

$3.$ Year $3$: J&J generates ordinary business income of $$4,000$ and long$-$term capital gains of $$1,000.$ Jiang receives a guaranteed payment of $$2,000.$

Description Amount

Recognized income or loss $fill in the blank f$2490$efac$028039\_1$

End$-$of$-$year outside basis $fill in the blank f$2490$efac$028039\_2$