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  3. g and l form a limited partnership. g, the general

G and L form a limited partnership. G, the general partner, contributes $10,000 and L,...

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Accounting

G and L form a limited partnership. G, the general partner, contributes $10,000 and L, the limited partner, contributes $90,000. The partnership purchases a building on leased land, paying $100,000 cash and borrowing $900,000 on a nonrecourse basis from a commercial lender, securing the loan with a mortgage on the building. The terms of the loan require the payment of market rate interest and no principal for the first ten years. Assume for convenience that the building is depreciable at the rate of $50,000 per year for twenty years, and that the other partnership income equals expense for the years in question. The partnership agreement contains a qualified income offset, and G is required to make up any capital account

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