. Ryan is a 25% partner in the ROCC Partnership. At the beginning of the tax year, Ryans basis in the partnership interest was $90,000, including his share of partnership liabilities. During the current year, ROCC reported net ordinary income of $100,000 and tax-exempt interest of $15,000. In addition, ROCC distributed $10,000 to each of the partners ($40,000 total). At the end of the year, Ryans share of partnership liabilities decreased by $10,000.

Required:

a. What is Ryans basis in the partnership interest at the end of the year?

b. Calculate the amount of income to be recognized on Ryans F1040 this year.