John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 350,000 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 1 Calculate ordinary income 2 Calculate Separately Reported items 3 Calculate ending basis for John and Mary. 100,000 4,000 -2,000 2,000 40,000 35,000 5,000 40,000 25,000 25,000 25,000 WY