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A toy store is organized as a partnership with four partners who split an equal profits interest in the company, Chris, Daniel, Steve, and Chelsea. As of the end of the partnerships prior tax year, the four partners had the following, respective ending outside tax bases: $30,000, $10,000, $25,000, and $45,000. During the current tax year, the following occurred with the partnership:

1. 1. • Received $100,000 for toy store sales made during the year
      • Incurred $30,000 in tax MACRS depreciation on equipment purchased during the year
      • Paid $80,000 in wages for employees (none of which are partners)
      • Paid $5,000 in cash distributions to each of its partners
      • Paid $2,000 in penalties for filing its Federal tax return late
      • Paid $20,000 on interest on its debt but didnt pay off any principal (ignore any limits on interest deductions)
      • Received $2,000 in interest income from a municipal bond it held for the city of Fairfax

1 The adjusted tax basis for Chris at the current tax year end after incorporating the above activities that occurred during the year without consideration for the role of the QBI deduction for each partner is $_______.

2 The adjusted tax basis for Daniel at the current tax year end after incorporating the above activities that occurred during the year without consideration for the role of the QBI deduction for each partner is $_______.

3 The adjusted tax basis for Steve at the current tax year end after incorporating the above activities that occurred during the year without consideration for the role of the QBI deduction for each partner is $_______.

4 The adjusted tax basis for Chelsea at the current tax year end after incorporating the above activities that occurred during the year without consideration for the role of the QBI deduction for each partner is $_______.

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