Ruby's Tax Basis in Her Partnership Interest at the Beginning

Essay

Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $13,000. The following items were included in her Schedule K-1 from the partnership for the year: $\begin{array}{l}\text { TALL LADDERS, LP }\\\text { Balance Sheet }\\\begin{array}{|l|r|r|}\hline & \text { Yea 1 } & \text { Year 2 } \\\hline \text { Assets } & 120,000 & 270,000 \\\hline \text { Nonrecourse } \\\text { Liabilities } & 50,000 & 180,000 \\\hline \text { Partner's Capital } & 70,000 & 90,000 \\\hline\end{array}\end{array}$ Determine what amounts related to these items Ruby will report on her tax return assuming her tax basis and at risk amount are equal and that she is a material participant in the partnership's activities.