Enter problem statement, appropriate input type, and other instructions here. Elyn is the general partnera and Danny is the limited partner in ED Limited partnership. The partnership has borrowed on a recourse basis to finance its operations. The partnership agreement provides that the partnership will maintain capitai accounts in conformity with IRS regulations, upon liquidation of the partnership each partner will receive the positive balance in their capital accounts. Ellyn as general partner must make up any deficit in her capital account upon partnership liquidation. Danny as limited partner is not obligated to make up any deficit in his capital account upon partnership liquidation. The partnership agreement provides that Elyn is to receive 25 % of all partnership profits and losses and Daany is to receive 75 % of all partnership profits and losses. On December 31, 2020 Ellyn has a positive capital account of $100,000 and Danny has a positive capital account of $300.000. The partnership has a taxable loss of $500,000 in 2020. How is that loss allocated between Ellyn and Danny ? O A. S200,000 to Elyn ; $300,000 to Danny O B. $250,000 to Ellyn ; $250,000 to Danny C. $125,000 to Elyn: $375,000 to Danny D. $100,000 to Elyn; $400,000 to Danny
Enter problem statement, appropriate input type, and other instructions here. Elyn is the general partnera and Danny is the limited partner in ED Limited partnership. The partnership has borrowed on a recourse basis to finance its operations. The partnership agreement provides that the partnership will maintain capitai accounts in conformity with IRS regulations, upon liquidation of the partnership each partner will receive the positive balance in their capital accounts. Ellyn as general partner must make up any deficit in her capital account upon partnership liquidation. Danny as limited partner is not obligated to make up any deficit in his capital account upon partnership liquidation. The partnership agreement provides that Elyn is to receive 25 % of all partnership profits and losses and Daany is to receive 75 % of all partnership profits and losses. On December 31, 2020 Ellyn has a positive capital account of $100,000 and Danny has a positive capital account of $300.000. The partnership has a taxable loss of $500,000 in 2020. How is that loss allocated between Ellyn and Danny ? O A. S200,000 to Elyn ; $300,000 to Danny O B. $250,000 to Ellyn ; $250,000 to Danny C. $125,000 to Elyn: $375,000 to Danny D. $100,000 to Elyn; $400,000 to Danny
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Enter problem statement, appropriate input type, and other instructions here.
Ellyn is the general partnera and Danny is the limited partner in ED Limited partnership. The partnership has borrowed on a recourse basis to finance its operations.
The partnership agreement provides that the partnership will maintain capital accounts in conformity with IRS regulations, upon liquidation of the partnership each
partner will receive the positive balance in their capital accounts. Ellyn as general partner must make up any deficit in her capital account upon partnership
liquidation. Danny as limited partner is not obligated to make up any deficit in his capital account upon partnership liquidation.
The partnership agreement provides that Ellyn is to receive 25 % of all partnership profits and losses and Daany is to receive 75 % of all partnership profits and
losses. On December 31, 2020 Ellyn has a positive capital account of $100,000 and Danny has a positive capital account of $300,000,
The partnership has a taxable loss of $500,000 in 2020. How is that loss allocated between Ellyn and Danny ?
O A. $200,000 to Elyn ; $300,000 to Danny
B. $250,000 to Ellyn : $250,000 to Danny
C. $125,000 to Ellyn; $375,000 to Danny
OD. $100,000 to Ellyn; $400,000 to Danny
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