The Greyjoy Partnership is equally owned by Theon and Yara. Theon’s basis in his partnership interest including his share of partnership liabilities is $89,100 at the beginning of 2020 calendar tax ye

The Greyjoy Partnership is equally owned by Theon and Yara. Theon’s basis in his partnership interest including his share of partnership liabilities is $89,100 at the beginning of 2020 calendar tax year of the partnership. Yara’s basis in her interest is $35,640 including her share of partnership liabilities. Greyjoy reported the following income and expenses for its 2020 calendar tax year:

• Income from services............................................................ $641,520
• Guaranteed payment to Theon................................................. 320,760
• Guaranteed payment to Yara.................................................... 213,840
• Salaries to non-partner employees.............................................. 71,280
• Depreciation expense................................................................ 64,152
• Rent expense............................................................................ 71,280
• Utilities expense....................................................................... 35,640
• Tax-exempt interest income...................................................... 32,076
• Dividend income...................................................................... 21,384
• Charitable contributions.............................................................. 7,128
• Political contributions............................................................... 14,256
• Long-term capital loss............................................................... 17,820
• Cash distribution to Theon on 12/31/2020.................................. 37,422
• Cash distribution to Yara on 12/31/20........................................ 85,800

The Greyjoy Partnership also increased its recourse liabilities by $26,400 during 2020 and that liability is allocated equally to the two partners.

(a) Compute Greyjoy’s ordinary income or loss from operations for its 2020 calendar tax year.

(b) List any separately stated items passing for the equal partners.

(c) Compute each partner’s basis in their partnership interest at the end of 2020, showing any income or gain taxable to them, how the distributions are treated, and any losses or expenses that are deductible by them.