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Ann, Bob, Cathy, and Dennis formed an equal partnership and each contributed $25,000. The partnership purchased a building for $1,000,000, using the $100,000 of cash and obtaining a $900,000 non-recourse loan.
Problem (a) Assume the partnership is a general partnership. What is each partner's outside basis? balance sheet to reflect the situation of the partners and the partnership.
Problem (b) Alternatively, assume the partnership is a limited partnership. Ann is the sole general partner and Bob, Cathy, and Dennis are limited partners. What is each partner's outside basis? balance sheet to reflect the situation of the partners and the partnership.
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