Same facts as in Question $11.$ GL LP incurs a tax loss of $$72,000$ in $2023,$ which includes

depreciation on plant and equipment equal to $$54,000.$ Pursuant to the partnership agreement,

the partners seek to allocate $$14,400(20\%)$ of this tax loss to $G$ and $$57,600(80\%)$ to $L.$ Can

they?

account. The entire $$72,000$ loss must be allocated to $L$ is accep

b$.$ No$.$ The allocation of nonrecourse deductions additional $$18,000$ in loss to be allocated

to them.

c$.$ No$.$ The allocation of nonrecourse deductions as described here is not consing the

some other significant item of income related to the properties securing the

nonrecourse debt.

d$.$ Yes. The proposed allocation meets all applicable standards.

e$.$ No$.$ But, for a reason other than those stated in the other choices.

Same facts as in Question $11,$ except that the Bank makes two $$200,000$ nonrecourse loans of

equal priority. GL LP purchases $$200,000$ of equipment with the proceeds of one these loans

and purchases the plant for $$200,000$ with the proceeds of the other. L guarantees the

repayment of the equipment loan. As in question $11,$ the partnership claims depreciation of

$$84,000$ on its equipment and $$24,000$ on its plant over the first two years of operation. What is

the aggregate amount of nonrecourse deductions $($excluding partner nonrecourse deductions$)$

properly allocated to $G$ and $L$ for these two years?

a$.G,$$$0$;$L,$$$0$

b$.G,$$$4,800$;$L$$$103,200$

c$.G,$$$20,160$;$L,$$$86,400$

d$.G,$$$28,000$;$L,$$$80,000$

e$.$ None of the above.

Same facts as in Ouestion $11,$ except that in $2023,$ GL LP earned $$160,000$ of taxable income.

purposes of this problem only, assume that the plant and property were not eligible for any

depreciation deductions in $2023.$ Accordingly book and tax basis would remain at the levels

shown for the entire year. GL LP used its income to pay down $$160,000$ of the bank debt.

is the proper amount of this income that should be allocated to G and L in $2022?$

a$.G$$$32,000$;$L,$$$128,000$

b$.G,$$$47,600$;$L,$$$112,400$

c$.G,$$$50,000$;$L,$$$110,000$

d$.G,$$$71,600$;$L,$$$196,400$

e$.$ None of the above.