Terence and Alfred each invested $10,000 cash in T&A General Partnership and each received a 50% interest in the partnership. The partnership borrowed $100,000 in full recourse debt.

1. Assume that the $100,000 was borrowed from a bank. What are the amounts Terence and Alfred have at-risk with respect to their partnership interests?
2. Assume that the $100,000 was borrowed from Alfred. What are the amounts Terence and Alfred have at-risk with respect to their partnership interests?

Answer rating: 100% (QA)

In a partnership the concept of being atrisk refers to the financial exposure of each partner The at... View the full answer