John and Mary are equal partnership in a partnership. John's beginning basis is 40,000 and Mary's beginning basis is 80,000

1	Sales		550,000
	Cost of Sales Long term capital gain Short term capital loss Dividend income Salaries Rent Expense Interest income Depreciation Section 179 expense Distribution to Mary Medical expenses for John paid by partnership	300,000 4,000 -2,000 2,000 45,000 20,000 5,000 30,000 25,000 25,000 25,000

1 Calculate ordinary income 2 Calculate Separately Reported Items

3 Calculate ending basis for John and Mary.