Nancy is a 50% partner in the Nancy and Peter partnership. The partnership received 300,000 from services and paid the following expenses: Rent 80,000 Salaries 50,000 Guarantee to Nancy 60,000 Distributions to Peter 30,000 Guarantee to Peter 20,000 Municipal interest income 10,000 Interest expense on loan to purchase municipal bonds 4,000 Liabilities at 12/31 40,000 a. How much is Nancys AGI increased from the partnership items of income and deduction? How are the items of income or deduction reported to Nancy? (ordinary or separately stated items?) b. Nancys basis at the beginning of the year (without liabilities) was 100,000. What is her basis at 12/31 ?