Question: Enter problem statement appropriate input type, and other instructions here Elyn is the general partnera and Danny is the limited partner in ED Limited partnership.

 Enter problem statement appropriate input type, and other instructions here Elyn

Enter problem statement appropriate input type, and other instructions here Elyn is the general partnera and Danny is the limited partner in ED Limited partnership. The partnership has borrowed on a recourse basis to finance its operations. The partnership agreement provides that the partnership will maintain capital account in conformity with IRS regulations, upon liquidation of the partnership each partner will receive the positive balance in their capital accounts. Ellyn as general partner must make up any deficit in her capital account upon partnership liquidation. Darvy as listed partner is not obligated to make up any deficit in his capital count upon partnership liquidation The partnership agreement provides that lyn is to receive 25% of all partnership profits and lenses und Daar is to receive 75% of all partnership prots and homes. On December 31. 2020 Ellyn has a positive capital account of $100.000 and Danny has a positive capital account of $300.000 The partnership has a taxable loss of $500,000 in 2020. How is that oss located between Ellyn and Danny ? O A $125,000 to Ellyn: 9375.000 to Danny OB. $250,000 to Ellyn: 5250,000 to Danny OC. $200,000 to Ellyn: $300,000 to Danny OD. $100,000 to Ellyn: 5400,000 to Danny

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!