Illustrate the difference in allocation of liabilities to


Explain the difference in recourse and nonrecourse liabilities when distinguishing between general and limited partners. Assume the partnership has $100,000 of recourse liabilities and $60,000 of nonrecourse liabilities. It has one general partner, Matt, who has a 20 percent interest in income and loss, and two limited partners, each of whom has a 40 percent interest in income and loss. Illustrate the difference in allocation of liabilities to these three partners.

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Cost Accounting: Illustrate the difference in allocation of liabilities to
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