14.Mitch and Chuck are partners in a partnership, who share profits and losses equally, with the following balance sheet:

Cash$10,000

Recourse liability8,000

Capital, Mitch1,500

Capital, Chuck500

The partners liquidated their previous business and are in the process of deciding to liquidate the partnership or start a new business.State law requires that a deficit in capital be restored on liquidation.How much is Chuck's share of the liability under Sec. 752?

a. $4,000

b. $4,500

c. $0

d. $500

15. Alexandra and Chip are partners, who share profits and losses equally, in a partnership that owns and operates residential rentals.Alexandra contributed real estate with a fair market value of $100,000 and a basis of $30,000, which was subject to a nonrecourse liability of $45,000.How much is Alexandra's share of the liability at the time of the contribution?

a. $30,000

b. $45,000

c. $22,500

d. $25,000

16. Lawrence and Jillian are partners, who share profits and losses equally, in an equipment leasing business.The partnership owns equipment with a fair market value of $40,000, and an adjusted basis of $10,000, and subject to nonrecourse debt of $25,000.If the property was disposed of for satisfaction of the debt and no other compensation, Lawrence would report a gain of $10,000; Jillian, $5,000.How much is Jillian's share of the debt under Sec. 752?

a. $5,000

b. $15,000

c. $10,000

d. $12,500

8. Lucero Partnership was formed when the partners contributed the following property:

NamePercent PropertyMarket ValueAdjusted Basis

Shunyin30%Inventory$15,000$12,000

Viktor 30%Equipment (Cost = $27,000) $19,000$12,000

Nonrecourse liability($ 4,000)

Adam40%Real Estate$32,000$15,000

Nonrecourse liability($12,000)

None of the real estate is depreciable.The real estate is sold for $42,000 two years after the contribution.How much gain or loss is allocated to Adam?

a. $5,000

b. $21,000

c. $12,600.

d. $10,800