Smith and Parker were equal partners in the ABC Partnership, a computer technology business involving website design and

computer hardware repair. At start$-$up of the ABC Partnership on January $1,$ Year $1,$ Smith and Parker each contributed $$50,000$ in

cash.

A list of Year $1$ activity for ABC Partnership is provided in the exhibit.

Complete the table below to determine Smith's tax basis in his partnership interest at the end of Year $1.$ Not all items may be needed

for the determination. For any item not needed, enter a zero $(0).$ Enter increases in tax basis as positive amounts and decreases in

tax basis as negative amounts.

ABC Partnership Year $1$ Activity

ABC Partnership Year $1$ Activity