Sandy and Dan own 40% and 60%, respectively, of the SD Partnership, which manufactures clocks. The partnership is a limited partnership, and Sandy is the only general partner. She works full-time in the business. Dan essentially is an investor in the firm and works full-time at another job. Dan has no other income except his salary from his full-time employer. During the current year, the partnership reports the following gain and loss: (Click the icon to view the gain and loss.) (Click the icon to view additional information.) Read the requirements. Requirement a. What gain or loss should each partner report on his or her individual tax return? Begin by determining the amount and character of gain or loss Sandy should report. Character Amount Requirements a. What gain or loss should each partner report on his or her individual tax return? b. If the partnership borrowed an additional $110,000 of recourse liabilities, how would your answer to Part a change? Data table - In Ordinary loss $ 150,000 Long-term capital gain 35,000 Print Done More info Before including the current year's gain and loss, Sandy and Dan had $38,000 and $85,000 bases for their partnership interests, respectively. The partnership has no nonrecourse liabilities. Dan has no further obligation to make any additional investment in the partnership. Print Done