Problem $1$ Debt$-$Recourse

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The equal DEF partnership has the following balance sheet:

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Cash and other assets$$ $$400,000$

Recourse liabilities$$ $$100,000$

Capital $$ D$$ $$100,000$

Capital $$ E$$ $$100,000$

Capital $$ F$$ $$100,000$

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The profits and losses are allocated $40\%$ to D$,$ and $30\%$ each to E and F$.$ Under the partnership agreement there is a capital account deficit restoration provision.$$

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a$.$ How should the liability be allocated?

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b$.$What would your answer be if E had guaranteed the lender that if F did not pay, E would pay F$$s share?

Problem $2$ Debt$-$ Non$-$recourse $$

Note: This problem has two different fact patterns

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Partners X and Y own the XY partnership.$$ XY owns a building with a book value$/$tax basis of $$800,000$ and an associated nonrecourse debt of $$900,000.$ All of the depreciation on the building has been allocated to Y$,$ and the original cost of the building was $$1,100,000.$ X is allocated $65\%$ of the partnership gains and losses, and Y gets the other $35\%.$

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a$.$ How much of the nonrecourse debt is allocated to each partner?$$

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$[$New fact pattern$]$ Partners G and H form the GH partnership, with G contributing $$200,000$ cash and H contributing some land with a basis of $$600,000$ and a FMV of $$900,000,$ subject to a nonrecourse liability of $$700,000.$ They agree to share profits and losses $60\%$ to G and $40\%$ to H$.$

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b$.$ What is H$$s share of the liability?