Agnes and Aunt Sue each invested $140,000 cash in the A&S Partnership and each received a 50%

Question:

Agnes and Aunt Sue each invested $140,000 cash in the A&S Partnership and each received a 50% interest in the partnership. To finance her investment in the partnership, Agnes borrowed $60,000 on a full recourse basis from her partner, Aunt Sue. Which of the following is correct?

a. Agnes’s at-risk amount in her partnership interest is $80,000.

b. Aunt Sue’s at-risk amount in her partnership interest is $140,000.

c. Agnes’s at-risk amount in her partnership interest is $140,000.

d. Aunt Sue’s at-risk amount in her partnership interest is $80,000.

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...

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