Tim is a $40$ percent general partner in the TC Partnership. The partnership$$s records for the current year show the following:

Sales revenue $$600,000$ Guaranteed payment to Tim $$35,000$

Cost of goods sold $460,000$ Interest income from corporate bonds $12,500$

Operating expenses $32,000$ Business entertainment $1,500$

Tim$$s basis in the partnership was $$78,000$ at the beginning of the year. During the year, Tim$$s share of partnership liabilities increased by $$40,000.$ The partnership made cash distributions totaling $$20,000$ during the year to Tim.

What is Tim's basis in the partnership at the end of the year? Show work for partial credit.