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

Sales revenue $600,000 Guaranteed payment to Tim 35,000Cost of goods sold 460,000 Interest income from corporate bonds 12,000Operating expenses 32,000 State sales tax penalty paid 1,500

Tims basis in the partnership was $75,000 at the beginning of the year. During the year, Tims 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.