Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General Partnership. In addition to their normal share of the partnerships annual income, Oscar and Felix receive annual guaranteed payments of $7,000 to compensate them for additional services they provide. Eastsides income statement for the current year reflects the following revenues and expenses:

Sales revenue	$	420,000
Dividend income		5,700
Short-term capital gains		2,800
Cost of goods sold		(210,000	)
Employee wages		(115,000	)
Depreciation expense		(28,000	)
Guaranteed payments		(14,000	)
Miscellaneous expenses		(9,500	)
Overall net income	$	52,000

In addition, Eastside owed creditors $120,000 at the beginning of the year but managed to pay down its debts to $90,000 by the end of the year. All partnership debt is allocated equally among the partners. Finally, Oscar, Felix and Marv had a tax basis of $80,000 in their interests at the beginning of the year. (Round your intermediate calculations and final answers to the nearest whole dollar amounts. Leave no answer blank. Enter zero if applicable.)

a. What tax basis do the partners have in their partnership interests at the end of the year?

b. Assume the partners began the year with a tax basis of $10,000 and all the debt was paid off on the last day of the year. How much gain will the partners recognize when the debt is paid off? What tax basis do the partners have in their partnership interests at the end of the year?