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ABC Partnership's calendar year records show the following:

ABC Partnership's calendar year records show the following:

20x1 20x2

Net Income N/A $5000

Recourse Debt $30000 $36000

Nonrecourse Debt $60000 $52000

ABC Partnership owns and rents out office buildings. All of its debt is owed to unrelated parties. L has a 10% ownership interest and is allocated 10% of all profits and losses. L is a limited partner and has a $3000 basis in the partnership at the beginning of 20x2. How much basis does L have in the partnership at the end of 20x2?

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20X1 Net income = NA Recourse debt = 30000 Non-recourse debt = 60000 20X2 Net income = 5000 Recourse... View the full answer

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