Wayne is one of two general partners in ZMZ Partnership. They share equally in income and losses. At the beginning of the current tax year, Wayne's adjusted basis in ZMZ is $6,250. He did not contribute or withdraw funds during the tax year and did not increase his share of partnership liabilities. ZMZ has an ordinary business loss of $14,000 during the current tax year, and Wayne has $10,000 taxable income from other unrelated sources.

This is a two-part question.

Question 1: How much (if any) of the ZMZ loss can Wayne deduct on his personal tax return for the current tax year?

Question 2: What is Wayne's adjusted basis in ZMZ Partnership at the end of the current tax year?

a) $ 750; $5,500

b) $6,250; $ 750

c) $6,250; $ 0

d) $7,000; $ 750