Michael Douglas has a one$-$third interest in the Basic Instinct Partnership. During $2022,$ Michael received a $$20,000$ guaranteed payment, which was deductible by the partnership, for services rendered to Basic Instinct. Basic Instinct reported a $2022$ operating loss of $$80,000$ before the guaranteed payment. What is $($are$)$ the net effect$($s$)$ of the guaranteed payment?

The guaranteed payment increases Michael's tax basis in the partnership by $$20,000$

The guaranteed payment increases Michael's ordinary income by $$20,000$

$2$ only

Neither $1$ or $2$

$1$ only

$1$ and $2$