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Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and
Assume the G\&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. Assume that the partnership operates the rental building for 6 full years and sells it after that time for $1,200,000. What is the amount of total gain on the sale? Refer to the facts of Question 10. How much is the total minimum gain chargeback on the sale? Do not use commas or dllar signs in your answer!! A
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