The partnership began the year with has assets with a basis of $600,000 and $400,000 in with recourse liabilities, and B's capital account was $50,000, before considering the amounts below. B's share of the profit and loss is 20% and he has a deficit restoration requirement. Liabilities did not change during the year and the partnership had $150,000 income, before considering $5,000 in nondeductible expenses. B withdrew $30,000 during the year and the other partners withdrew $120,000.
What is B's taxable income for the year? Show your calculations.
What is B's basis in the partnership at the end of the year? Show your calculations.