Walter \& Sherry Company is a partnership that has two partners, Walter and Sherry. At the beginning of the year, Walter's basis in the partnership is $38,000 while Sherry's basis is $65,000. Walter's profit-sharing ratio is 40% and his loss sharing ratio is 30%. Sherry's profit-sharing ratio is 60% and her loss sharing ratio is 70%. In Year 1 , the Walter \& Sherry Company take out a $60,000 recourse loan and a $100,000 non-recourse loan. What is Walter's basis at the end of the year