Consider the following scenario and answer the accompanying questions:

LP is a limited partner and GP is a general partner of the LG partnership. LP contributes $$90,000$ and GP contributes $$10,000$ to the partnership, which then gets a $$400,000$ nonrecourse loan and purchases a building for $$500,000.$ GP is required to make up any capital account deficit, but LP is not. However, the partnership agreement has a qualified income offset provision for LP and also a minimum gain chargeback provision. The partnership allocates $90\%$ of all partnership items to LP and $10\%$ to GP until the partnership generates minimum gain. At that point, they will be allocated $50/50.$

Is this allocation $$reasonably consistent$$ with the allocation of items that do have substantial economic effect?

What would your answer be if$,$ after the partnership generates minimum gain, items of income and loss are allocated $99\%$ to LP and $1\%$ to GP$?$