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21 March, 08:23

Dione is a general partner who owns 50% interest in Love First Enterprises. Sammy is a limited partner who also owns 50%. The partnership has $50,000 in recourse liabilities and $20,000 in nonrecourse liabilities. What is Dione's total share of liabilities? a. $35,000

b. $45,000

c. $60,000

d. $70,000

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  1. 21 March, 08:37
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    c. $60,000

    Explanation:

    The computation of the total share of liabilities is shown below:

    = Recourse liabilities + half of the non-recourse liabilities

    = $50,000 + $10,000

    = $60,000

    Since Sammy is a limited partner so he should not be entitled to the recourse liabilities and the 50% is the partnership interest so half of the amount is allocated to the non-recourse liabilities
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