1.LDK is a limited partnership. L is a 20% general partner. D and K are each 40% limited partners. The initial assets of LDK are $200,000 in cash contributed by L, $400,000 in cash contributed by D and $400,000 cash contributed by K. The partnership uses $500,000 of the cash and the proceeds of a $1,000,000recourseloan to purchase land worth $1,500,000. D has a $100,000 deficit restoration obligation. K has no deficit restoration obligation. K has agreed to guarantee 50% of the debt and does not waive the right to seek reimbursement from the other partners ( the right of subrogation).

(a). Calculate each partner's respective shares of the recourse loan, that is, each partner's economic risk of loss.

(b). Calculate the outside basis of each partner's partnership interest immediately after the land is purchased.