The MGP General Partnership was created on January 1 of the current year by having Melinda, Gabe, and Pat each contribute $10,000 cash to the partnership in exchange for a one-third interest in partnership income, gains, losses, deductions, and credits. On December 31 of the current year, the partnership balance sheet reads as follows:

Pat's capital account is less than Melinda's and Gabe's capital accounts because Pat has withdrawn more cash than the other partners have.

How do the partners share the recourse debt as of December 31 of the current year?

Transcribed Image Text:

Basis FMV Basis FMV Assets $60,000 S75,000 Recourse debt $30,000 $30,000 Melinda, capital 14,000 19,000 14,000 19,000 2,000 7000 $60,000 $75,000 Gabe, capital Pat, capital