Flagg and Miles are each 50% partners in Decor Partnership.
Each partner had a $200,000 tax basis in the partnership on
January 1, 2012. Decorís 2012 net business income before guaranteed
payments was $45,000. During 2012, Decor made a
$7,500 guaranteed payment to Miles for deductible services rendered.
What is Milesís tax basis in Decor on December 31, 2012?