Nick and Paige are equal partners in NP Partnership. The partnership, Nick, and Paige are calendar year taxpayers.

The partnership incurred the following items in the current year:

Sales $450,000

Cost of goods sold 210,000

Dividends on corporate investments 15,000

Tax-exempt interest income 4,000

Sec. 1245 gain (recapture) on equipment sale 33,000

Sec. 1231 gain on equipment sale 18,000

Long-term capital gain on stock sale 12,000

Long-term capital loss on stock sale 10,000

Short-term capital loss on stock sale 9,000

Depreciation (no Sec. 179 or bonus depreciation components) 27,000

Guaranteed payment to Paige 30,000

Meals and entertainment expenses 11,600

Interest expense on loans allocable to:

Business debt 42,000

Stock investments 9,200

Tax-exempt bonds 2,800

Principal payment on business loan 14,000

Charitable contributions 5,000

Distributions to partners ($40,000 each) 80,000

Compute the partnerships ordinary income and separately stated items and report the appropriate items on Form 1065 and prepare a Schedule K-1 for Paige.

Compute Nicks and Paiges ending basis in their partnership interests assuming their beginning balances are $150,000 each.