PS Ch$9$ #$2$ Tom, Urton, and Vic started the Beta equal partnership with contributions of cash $($$$50,000$ each$).$ At the end of the first year of operations Beta has the following economic balance sheet:

cash $ $17,000$ accts payable $ $60,000$

accts receivable $27,000$ T $70,000$

land $226,000$ U $70,000$

V $70,000$

total assets $$270,000$ total liabilities$/$equity $$270,000$

$1.$ Assuming Beta is a cash basis partnership, calculate the income for Beta partners at year$-$end.

$2.$ Calculate the outside basis for each of the Beta partners at year$-$end.

$3.$ Suppose that the accounts payable were actually a recourse loan. Calculate taxable income and the outside basis for each of the Beta partners at year$-$end.

$4.$ Suppose that at year$-$end the economic balance sheet appears as follows $($the partners still share profits and losses equally$).$ Calculate the amount of recourse debt that should be allocated to each partner.

Cash $ $70,000$

land $200,000$

total $ $270,000$

recourse loan $ $60,000$

T $100,000$

U $40,000$

V $70,000$

total $ $270,000$