Question

Marcus is a general partner who owns a 50% interest in Barron Enterprises. Malcolm is a...

Marcus is a general partner who owns a 50% interest in Barron Enterprises. Malcolm is a limited partner who owns 50%. The partnership has $50,000 in recourse liabilities and $30,000 in nonrecourse liabilities. What is Marcus' total share of liabilities?

$40,000 $50,000 $65,000 $80,000

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Answer #1
Answer
The correct option C : $ 65,000.
Explanation
Point - 1

General partners need to fully bear the recourse liabilities.
Point - 2 The non recourse liabilities will be shared between both the general and limited partner in proporiton of their interest.
Point -3 recourse liabilities fully borne by Marcus (only general partner) $50,000
non recourse liability in proportion of interest ($30,000*50%) $15,000
Marcus's total share of liabliities $65,000
Therefore,
Option C is correct
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