KLMN Partnerships financial records show the following:
gross receiptd from sales	$ 670,000.00
cost of goods sold	$ (460,000.00)
operating expenses	$ (96,800.00)
business meals and expenses	$ (6,240.00)
section 1231 loss on equipment sale	$ (13,500.00)
charitable contribution	$ (1,500.00)
distribution of partners	$ (10,000.00)
Refer to the facts in the preceding problem. Mr. T is a 10 percent general partner in KLMN. During the year, he received a $1000 cash distribution from KLMN.
A. Compute Mr. T's share of partnership ordinary income and seperately stated items.
B. If Mr. T's adjusted basis in his KLMN interest was $45000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year.
C. How would your basis computation change if KLMN's debt at the end of the year was $28000 more than its debt at the beginning of the year?