Wade has a beginning basis in a partnership of $23,000. His share of income and expense from the partnership consists of the following amounts:
Ordinary income…………………….$43,000
Guaranteed payment…………………12,000
Long-term capital gain……………….15,500
§1231 gain…………………………….4,300
Charitable contributions………………2,000
§179 expense………………………...18,000
Cash distribution……………………...6,000
a. What is Wade’s self-employment income?
b. Calculate Wade’s basis at the end of the year.