Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2018, the adjusted basis in her YZ interest was 95,000. For 2018, YZ generated a 210,000 business loss, earned 14600 dividend and interest income on its investment, and recognized a 6,200 capital gain YZ made no distributions to its partners and had no debt. In 2019, YZ generated 7,000 ordinary business income and 18,000 dividend and interest income. The partnership made no distributions. At the end of the year, YZ has 21,000 debt.

a. How much partnership income will Zelda report on her 2019 return? Assume the excess business loss limitation does not apply. Partnership income / (loss)

b. Compute Zeldas adjusted basis in her YZ interest at the end of 2019.

Adjusted basis