ohn and Mary are equal partner in a partnership. John's beginning basis is 80,000 and Mary's beginning basis is 100,000 Sales 250,000 Long term capital loss -5,000 Short term capital gain 4,000 salaries 8,000 Rent Expense 24,000 Interest income 6,000 Section 179 expense 20,000 Distribution to Mary 30,000 Medical expenses for John paid by partnership 40,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary. 2 Mark and Windy are equal partners in WM Partnership. Mark's basis in the partnership at the beginning Of year is 200,000. He received current distribution his pro rate share of partnership assets: Basis FMV