Claudia invested $50,000 cash in the C&S General Partnership and received a 20% interest.The partnership borrowed $200,000 of full recourse debt from a local bank.Assuming that Claudia is personally liable for $40,000 if the partnership defaults on the loan,what is Claudia's at-risk amount before considering any partnership income or loss?

Question

Quizplus · Accepted Answer

Claudia's at-risk amount includes her initial cash investment of $50,000 plus her share of the recourse debt for which she is personally liable ($40,000), totaling $90,000.

Claudia Invested $50,000 Cash in the C&S General Partnership and Received