1. Tom invested $20,000 in a limited partnership. His share of liabilities from mortgage debt was initially $45,000. The property suffered a loss in income during the first year, of which Toms share was $5,000. However, in years two through four income allocated from the account equaled a total of $9,000 ($3,000 per year). The reduction in debt at the end of year 4 from amortization of the loan is equal to $1,100. What is Toms basis in the partnership interest at the end of year 4? (A)

(A) $67,900

(B) - $9,900

(C) $77,900

(D) $70,100

2. Refer to the question above. What is the balance of Toms capital account at the end of year 4? (B)

(A) - $9,900

(B) $24,000

(C) $69,000

(D) $70,100

PLEASE HELP ME ANSWER QUESTION # 2 .