Sylvia

Sylvia and Quinn

Quinn are partners in the SQ Partnership. Sylvia owns a 60% capital, profits, and loss interest. Quinn owns the remaining interest. Both materially participate in partnership activities. At the beginning of the currentyear, SQ's only liabilities are $20,000 in accountspayable, which remain outstanding atyear-end. InNovember, SQ borrows$120,000 on a nonrecourse basis from First Bank. The loan is secured by property with a

$240,000 FMV. These are SQ's only liabilities atyear-end. Bases for the partnership interests are 180,000 for Sylvia 120,000 for Quinn

after considering the impact of liabilities but before considering operations. SQ has a $300,000 ordinary loss from operations during the current year.

Requirement

How much loss can Sylvia and Quinn recognize?

Sylvia will recognize a loss of

Quinn will recognize a loss of

.