Explain the difference in recourse and nonrecourse liabilities when distinguishing between general and limited partners. Assume the partnership has

$100,000 of recourse liabilities and $60,000 of nonrecourse liabilities. It has one general partner, Matt, who has a 20 percent interest in income and loss, and two limited partners, each of whom has a 40 percent interest in income and loss. Illustrate the difference in allocation of liabilities to these three partners.

AppendixLO1