Mountain, Inc. and River, Inc. are members of a newly created MAX LLC. Mountain's share of profits, loss and capital of MAX is 40%, 50% and 50%, respectively. River's share of profits, loss and capital of MAX is 60%, 50% and 50%, respectively. At the end of the year, MAX LLC has $40,000 of accounts payable and $100,000 loan personally guaranteed by River, inc. Determine 

(1) the amount of recourse debt and 

(2) the amount of nonrecourse debt, which will be shown on Mountain's Schedule K-1 for the year

Answer rating: 100% (QA)

To determine the amounts of recourse and nonrecourse debt shown on Mountains Schedule K1 for the y... View the full answer