Tom and Bob formed TBT Partnership with cash contributions of $40,000 each. Bob is a limited partner and does not materially participate in the business; Tom is a general partner and runs the business. The partnership agreement states that Tom and Bob share all partnership profits and losses equally. TBT borrows $80,000 from the local bank to purchase equipment. Tom signed the note, and he will be required to pay the bank if TBT defaults. Tom and Bob make no more contributions and take no distributions. During this first tax year, TBT incurs a net business loss of $120,000. This is a four-part question. Question 1: What is Tom's adjusted basis in TBT before considering the loss? Question 2: What is Bob's adjusted basis in TBT before considering the loss? Question 3: How much (if any) of the TBT loss can Tom deduct on his individual tax return? Question 4: How much (if any) of the TBT loss can Bob deduct on his individual tax return?