Using the following information, complete the Excel spreadsheet to calculate the amount of each partner's basis in the partnership interest at the end of Year 1 and Year 2.
Enter losses, deductions, and distributions as negative values.
Enter income, gains, and contributions as positive values.
If an item is zero, or the item does not impact basis in the partner's partnership interest, enter a zero.
	John	Kate
Year 1:
Beginning basis in partnership interest	$0	$0
Contributions
Partnership recourse debt (trade accounts payable)
Partnership nonrecourse secured debt (land)
Ordinary business income
Nontaxable income
Separately stated income items
Guaranteed payment (John)
Distributions
Nondeductible expenses
Ordinary business loss
Separately stated expense items
Year 1 Ending Basis in Partnership Interest
Year 2:
Contributions
Increase in partnership recourse debt (accounts payable)
Increase in partnership nonrecourse secured debt (land)
Ordinary business income
Nontaxable income
Separately stated income items
Guaranteed payment (John)
Decrease in partnership recourse debt (accounts payable)
Decrease in partnership nonrecourse secured debt (land)
Distributions
Nondeductible expenses
Ordinary business loss
Separately stated expense items
Year 2 Ending Basis in Partnership Interest