Thank you for new help to this problem on PARTNERSHIP TAXATION:

In the current year, Mary, Andrew, and Paul formed Vinny General Partnership. Mary contributed $55,000 cash, Andrew contributed $55,000, and Paul contributed land with a cash basis of $70,000 and a fair market value of $180,000. The partnership assumed a $70,000 mortgage on the land; no partner is personally liable for the mortgage. At the end of the current year, Venezia made a $7,000 payment on the mortgage. Mary, Andrew, and Paul will split all profits and losses equally.

Current-year operations had the following results:

Sales revenue: $260,000

Cost of goods sold: $205,000

Operating expenses: $35,000

Long-term capital gains: $1,200

Section 1231 Gains: $450

Charitable contributions: $350

Municipal bond interest: $150

Salary paid as a guaranteed payment to Andrew (not included in expense): $1,500

1) Please provide guidance to determine Mary, Andrew, and Paul's initial basis in the partnership interest.

2) Help determining what is the effect of the mortgage on each partner's basis?

3) Assistance to calculate current year ordinary business income.

Course Reference: Colorado State University Global. ACT550: Advanced Income Taxation

Textbook Reference: Young, J.C., Nellen, A., Maloney, D.M. (2023). South-Western federal taxation 2023: Comprehensive. (46th ed.). Cengage Learning. ISBN-13- 9780357719688