Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Elyn is the general partnera and Danny is the limited partner in En Limited partnership. The partnership has borrowed on a recourse basis to finance

image text in transcribed
Elyn is the general partnera and Danny is the limited partner in En Limited partnership. The partnership has borrowed on a recourse basis to finance its operations. The partnership agreement provides that the partnership will maintain capital accounts in conformity with IRS regulations, upon liquidation of the partnership each partner will receive the positive balance in their capital accounts. Elyn as general partner must make up any deficit in her capital account upon partnership liquidation. Danny as limited partner is not obligated to make up any deficit in his capital account upon partnership liquidation The partnership agreement provides that Elyn is to receive 25 % of all partnership profits and losses and Duany is to receive 75 % of all partnership profits and losses. On December 31, 2020 Elyn has a positive capital count of $100.000 and Danny has a positive capital account of $300.000, The partnership has a taxable loss of $500,000 in 2020 How is that low wated between Ellyn and Danny O A $100.000 to Ellyn: 5400.000 to Danny OB. $125,000 to Ely: $375,000 to Danny OC. $250,000 to Ely: $250,000 to Danny OD, 5200,000 to Elyn: $300,000 to Danny Elyn is the general partnera and Danny is the limited partner in En Limited partnership. The partnership has borrowed on a recourse basis to finance its operations. The partnership agreement provides that the partnership will maintain capital accounts in conformity with IRS regulations, upon liquidation of the partnership each partner will receive the positive balance in their capital accounts. Elyn as general partner must make up any deficit in her capital account upon partnership liquidation. Danny as limited partner is not obligated to make up any deficit in his capital account upon partnership liquidation The partnership agreement provides that Elyn is to receive 25 % of all partnership profits and losses and Duany is to receive 75 % of all partnership profits and losses. On December 31, 2020 Elyn has a positive capital count of $100.000 and Danny has a positive capital account of $300.000, The partnership has a taxable loss of $500,000 in 2020 How is that low wated between Ellyn and Danny O A $100.000 to Ellyn: 5400.000 to Danny OB. $125,000 to Ely: $375,000 to Danny OC. $250,000 to Ely: $250,000 to Danny OD, 5200,000 to Elyn: $300,000 to Danny

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Information Audit A Practical Guide

Authors: Susan Henczel, Sue Henczel

1st Edition

3598243677, 978-3598243677

More Books

Students also viewed these Accounting questions

Question

7. List behaviors to improve effective leadership in meetings

Answered: 1 week ago

Question

6. Explain the six-step group decision process

Answered: 1 week ago