Partners G and H form the GH partnership, with G contributing $200,000 cash and H contributing some land with a basis of $600,000 and a FMV of $900,000, subject to a nonrecourse liability of $700,000. They agree to share profits and losses 60% to G and 40% to H. What is H's share of the liability?

Question

Business

Izabelle Copeland

12 July, 04:38

Partners G and H form the GH partnership, with G contributing $200,000 cash and H contributing some land with a basis of $600,000 and a FMV of $900,000, subject to a nonrecourse liability of $700,000. They agree to share profits and losses 60% to G and 40% to H. What is H's share of the liability?

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Answers (1)

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Eve Watts · Answer 1

Answer:$700,000

Explanation:

A non recourse liability means the partner liability is only limited to the assets or fund he has pledge as a liability and creditor cannot seek more than that from him should a loss occur.