Susan and Sarah Form a Partnership by Each Making Contributions

question 94

Essay

Susan and Sarah form a partnership by each making contributions of $30,000 cash to partnership capital.The partnership purchases an asset for $200,000,using the cash and financing the rest with a $140,000 recourse note.Susan is allocated 75% of partnership profits and losses until the date when the total partnership profits exceed total partnership losses.After that date,the profits and losses are shared equally between the two partners.The partners expect the partnership to have losses for the first three years of operations and profits thereafter.How will the recourse debt be shared between the partners for basis purposes immediately after the property is acquired?

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Definitions:

Molecular Genetics

A branch of genetics that studies the structure and function of genes at a molecular level, including DNA, RNA, and protein synthesis.

Gene Flow

The exchange of genetic material between separate populations, enhancing genetic diversity within populations.

Evolutionary Force

A factor that brings about changes in the genetic structure of a population, including natural selection, mutation, gene flow, and genetic drift.

Populations

Groups of individuals belonging to the same species that live in the same area and are capable of interbreeding.