$1,000,000 of required capital is funded as follows: 90% (900,000)by the investors (limited partners) and 10% ($100,000) by the operating (general) partner. The agreement provides that available cash flow is distributed as follows:

1. 8% annual preferred return to all partners on their equity contributed

2. Return of capital contributed

3. Remaining available cash flow distributed 70% to investors (limited partners) and 30% to the operating (general) partner

There is mo cash flow available until the sale of the investment to distribute any cash. At the end of 1 year, the investment is sold and $2,080,000 is available for distribution to the limited and general partners.

A) What is the total $$ amount of preferred return payable to ALL partners (limited and general partners)?

B) What is the total $$ amount of preferred return payable to the limited partners?

C) What is the promote payment payable to the General partner?