Question: Advanced Taxation.

Sandeep is a 50% partner in ABC Partnership. At the beginning of the tax year, Sandeep's outside basis was $50,000, including his share of partnership liabilities. During the current year, Sandeep reported net ordinary income of $150,000. ABC Partnership distributed $15,000 to each of the partners ($30,000) total. At the end of the year, Sandeep's share of partnership liabilities increase by $10,000. What is Sandeep's outside basis in the partnership interest at the end of the year? Please show your calculations and explain your response.