Please answer A and B. Thank you.
Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2022, the adjusted basis in her YZ interest was $95,000. For 2021, YZ generated a $210,000 business loss, earned $14,600 dividend and interest income on its investments, and recognized a $6,200 capital gain. YZ made no distributions to its partners and had no debt. In 2023, YZ generated $7,000 ordinary business income and $18,000 dividend and interest income. The partnership made no distributions. At the end of the year, YZ had $21,000 debt.
Required:
A. How much partnership income will Zelda report on her 2023 return? Assume the excess business loss limitation does not apply. Note: Losses should be indicated by a minus sign.
B. Compute Zelda’s adjusted basis in her YZ interest at the end of 2023.