Jack Dillon and Jake Johnson each own 50 percent of the capital interests in the JJ partnership. They share profits equally, but they agree to allocate 60 percent of the losses to Jack and 40 percent to Jake. The note payable is a recourse liability. The tax-basis balance sheet at the end of the year is as follows:

Determine how much of the liability is allocable to each partner.

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Cash Equipment Total assets Note Payable Capital, Jack Dillon Capital, Jake Johnson Total liabilities and capital $50,000 100,000 $150,000 $90,000 30,000 30,000 $150,000