Ken invested $200,000 for a 30% interest in a partnership in which he is a material participant.

Question:

Ken invested $200,000 for a 30% interest in a in which he is a material participant. The borrowed $250,000 from a bank and used the proceeds to acquire equipment. What is Ken's at-risk amount if the $250,000 was borrowed on a nonrecourse loan? How could Ken's at-risk amount differ if the partnership's business involved a real estate development activity and the debt was secured by land the owns?
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...