Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2015, the adjusted basis in her YZ interest was $95,000. For 2015, YZ generated a $210,000 business loss, earned $14,600 dividend and interest income on its investments, and recognized a $6,200 capital gain. YZ made no distributions to its partners and had no debt. In 2016, 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 had $21,000 debt.

a. Compute Zeldas adjusted basis in her YZ interest before loss deduction in 2016.

b. Compute Zeldas adjusted basis in her YZ interest at the end of 2016.

Answer:

a. & b.

Zelda can deduct her $18,520 loss carryforward from 2015. Consequently, she will report a $14,320 business loss ($4,200 share of 2016 income $18,250 loss carryforward) and $10,800 dividend and interest income on her 2016 Form 1040.

Zeldas adjusted basis at beginning of 2016	$	0
Increased by: 60% share of business income		4,200
60% share of dividends and interest		10,800
60% share of partnership debt		12,600
Basis before loss deduction	$	27,600
Decreased by deduction for 2015 loss carryforward ($126,000 $107,480)		(18,520	)
Zeldas adjusted basis at end of 2016	$	9,080

I already got the answer, I just want to know about how to get the numbers of '126,000 and 107,480?' from 'Decreased by deduction for 2015 loss carryforward ($126,000 $107,480)'