CCC Partnership borrowed $100,000 on a five-year recourse note from a local bank. It also purchased land

Question:

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:

CCC Partnership borrowed $100,000 on a five-year recourse note from

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?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...