CCC Partnership borrowed $100,000 on a five-year recourse note from a local bank. It also purchased land for $60,000, putting $10,000 down and signing a qualified nonrecourse loan secured by the land for the balance. The partners’ interests in partnership profits and losses are as follows: Partner Loss Profit Carol (general partner) 25% 50% Charles (limited partner) 40% 25% Charlotte (limited partner) 35% 25% How is the $100,000 recourse note allocated to the partners’ bases? How is the $50,000 nonrecourse note allocated to the partners’ bases? How would your answers change if Carol, Charles, and Charlotte were all general partners?
CCC
|
Partner |
Loss Profit |
|
Carol (general partner) |
25% 50% |
|
Charles (limited partner) |
40% 25% |
|
Charlotte (limited partner) |
35% 25% |
How is the $100,000 recourse note allocated to the partners’ bases?
How is the $50,000 nonrecourse note allocated to the partners’ bases?
How would your answers change if Carol, Charles, and Charlotte were all general partners?
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