Assume Jerry has a $14,000 basis in his partnership interest at the beginning of 2012. He is a 30% partner in the JAB Partnership. Year-end results for 2012 show an ordinary loss of $60,000, dividend income of $3,000 and a long-term capital gain of $5,000. Partnership liabilities increased from $100,000 at the beginning of the year to $130,000 at year-end. During the year the partnership distributed $12,000 of cash to Jerry.