Question
Allocation of Recourse Debt (LO. 10) The MGP General Partnership was created on January 1 of the current year by Melinda, Gabe, and Pat each
Allocation of Recourse Debt (LO. 10)
The MGP General Partnership was created on January 1 of the current year by Melinda, Gabe, and Pat each contributing $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:
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Pat's capital account is less than Melinda's and Gabe's capital accounts because Pat has withdrawn more cash than the other partners.
Assuming the constructive liquidation rules, what is the amount of each partner's share of the recourse debt as of December 31 of the current year?
As of December 31 of the current year, the share of the $30,000 recourse debt is $ for Melinda, $ for Gabe, and $ for Pat.
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