Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning basis is $33,000 for Phil and $31,000 for Liz.

The partnership had the following activity during the year:

Income		$336,123
Interest Income		1,259
Dividend Income		4,586
Long Term Capital Gains		13,458
	Total Revenue	$355,426
EXPENSES
Salaries (nonpartners)		47,000
Guaranteed payments
Williams		75,000
Johnson		50,000
Depreciation MACRS includes $9000 of section 179 expense		41,888
Interest expense		5,220
Taxes and licenses		15,548
Meals (100%)		15,257
Auto		2,254
Insurance (nonpartner health)		6,000
Accounting and legal		2,800
Repairs		1,200
Charitable Contributions		2,500
Payroll Penalties		500
	Total Expenses	$268,167
	Net Income	$87,259

Calculate the ordinary income for the partnership and prepare page 1 of Form 1065.

Prepare page 4 of Form 1065.

What is the ending basis for Phil Williams?

What is the ending basis for Liz Johnson?