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Generally, when the partnership has only recourse debts the partners basis in the partnership under the regulations will equal his loss percentage multiplied by the

Generally, when the partnership has only recourse debts the partners basis in the partnership under the regulations will equal his loss percentage multiplied by the total book value of the partnerships assets. a. Using the accounting equation (A = L + C) explain why the above statement is true. b. Under what conditions will the partners basis differ from the loss ratio multiplied by the partnerships basis in the assets, assuming the partnerships only liabilities are recourse debts

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