question archive Albany, Brooklyn and Charlotte are the members of Allstate Adventures LLC, a limited liability company that is treated as a partnership for federal income tax purposes
Albany, Brooklyn and Charlotte are the members of Allstate Adventures LLC, a limited liability company that is treated as a partnership for federal income tax purposes
Subject:AccountingPrice: Bought3
Albany, Brooklyn and Charlotte are the members of Allstate Adventures LLC, a limited liability company that is treated as a partnership for federal income tax purposes. Allstate is contemplating taking a loan of $90,000 from a local Montana bank to finance acquisition of the newest generation of river rafts for use in its operation on the Middle Fork of the Flathead River. After careful review, Albany concludes that the loan agreement contains no provision limiting her personal exposure and demands that Brooklyn and Charlotte indemnify her from liability on the loan. Brooklyn, in turn, demands an indemnity from Charlotte with respect to any amount that she is required to pay to Albany (although not with respect to any amount she is required to pay to the bank). If the requested indemnities are given, what are the partners’ respective shares of the bank loan under section 752? You may assume that there is no plan to circumvent or avoid any partner’s payment obligation and that, to the extent relevant, there is no question regarding any partner's ability to pay.
a) Albany, $0; Brooklyn, $0; Charlotte, $0
b) Albany, $0; Brooklyn, $30,000; Charlotte, $60,000
c) Albany, $0; Brooklyn, $45,000; Charlotte, $45,000
d) Albany, $30,000; Brooklyn, $30,000; Charlotte, $30,000
