On January $1,$ Year $1,$ C and D formed a general partnership. The partnership agreement complies with the Basic Test. The partnership uses the Remedial Allocation Method.

Book Allocations. The agreement allocates book items between the partners as follows:

$$ For Year $1$ through Year $7$:

a$.25\%$ to C and $75\%$ to D$,$ provided, however, that non$-$recourse deductions are allocated equally between the two partners $(50$:$50)$; and

$$ For Year $8$ and thereafter, $50\%$ to C and $50\%$ to D$.$

You are to assume that these allocations meet the substantiality requirement.

Tier $3$ Non$-$Recourse Liability Allocation. The partnership has elected to have all non$-$recourse liabilities allocated under Tier $3$ to be allocated in accordance with the partners$$ respective shares of profits. You are to assume that this means: in Years $1$ through Year $7,$ the Tier $3$ liability allocations are $25\%$ to C and $75\%$ to D; and in Year $8$ and thereafter, the Tier $3$ liability allocations are $50\%$ to C and $50\%$ to D$.$ And you are to assume that this choice is allowed.

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Contributions. The contributions to the partnership on formation were:

$$ C contributed equipment, on which, at the time of contribution, C had $4$ years of straight$-$line depreciation left. The fair market value of this contributed equipment, at the time of contribution, was $$100,$ and C$$s basis in the equipment was $$20.$ The contributed equipment was subject to a non$-$recourse liability of $$79.$

$$ D contributed $$80$ in cash.

During each of Year $1$ and Year $2,$ the partnership paid interest on the loan, but principal payments were not made. So$,$ the principal amount of the liability remained the same at all times. In each of those years, the partnership$$s net income before depreciation was zero. So$,$ on a tax basis, in each of Year $1$ and Year $2,$ the partnership had a net loss equal to the depreciation on the contributed equipment.

The partnership did not make any distributions in either Year $1$ or Year $2.$

In answer to this problem, answer the questions posed below by filling in the indicated blanks:

On formation, the partners$$ tax capital accounts were:

C$$s tax capital account was: $$80$

D$$s tax capital account was: $$(59)$

On $12/31,$ Year $1,$ the partners$$ tax capital accounts were:

C$$s tax capital account was: $

D$$s tax capital account was: $

On $12/31,$ Year $1,$ the partners$$ outside bases were:

C$$s outside basis was: $

D$$s outside basis was: $

On $12/31,$ Year $2,$ the partners$$ tax capital accounts were:

C$$s tax capital account was: $

D$$s tax capital account was: $