Question: 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

CCC 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 profits and losses are as follows:

a. How is the $100,000 recourse note allocated to the partners' bases?
b. How is the $50,000 nonrecourse note allocated to the partners' bases?
c. How would your answers change if Carol, Charles, and Charlotte were all general partners?

Partner Carol (general partner) Charles (limited partner) Charlotte (limited partner) Loss 25% 4096 35% Profit 50% 2596 25%

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