The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Lance and Francesca had bases of $11,600 and $4,400, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest $1231 gain $ 693,000 514,000 192,000 2,200. 3,400 7,400 On the last day of the year, the partnership distributed $4,400 each to Lance and Francesca. Comprehensive Problem 20-81 Part 1 (Algo) a. What outside basis do Lance and Francesca have in their partnership interests at the end of the year? b. How much of their losses are currently not deductible by Lance and Francesca because of the tax-basis limitation? c. To what extent does the passive activity loss limitation apply in restricting their deductible losses for the year? (For all the requirements, negative amounts should be entered with a minus sign. Leave no answer blank. Enter zero if applicable.) Answer is complete but not entirely correct. Lance a. Year end basis b. Loss limited by tax basis c. Loss limited by passive activity Francesca $ 6,000 $ 0 0 $ (2,100) $ 0 $ (6,500)