Hall and Haig are equal partners in the firm of Arosa Associates.
On January 1, 2012, each partnerís adjusted basis in Arosa
was $40,000. During 2012 Arosa borrowed $60,000, for which
Hall and Haig are personally liable. Arosa sustained an operating
loss of $10,000 for the year ended December 31, 2012. The basis
of each partnerís interest in Arosa at December 31, 2012, was