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Gray is a 50% partner in Fabco Partnership. Gray’s tax basis in Fabco on January 1, 2012, was $5,000. Fabco made no distributions to the partners during 2012, and recorded the following:
Ordinary income $20,000
Tax exempt income 8,000
Portfolio income 4,000
What is Gray’s tax basis in Fabco on December 31, 2012?