Question - The ABC Partnership has the following assets and liabilities before any reduction for year-end principal payments on the liabilities. Assume the book basis and tax basis are the same amount.

Assets: Basis $300,000 Value $400,000

Nonrecourse debt: Basis $500,000 Value $500,000

If the partners have a deficit in their capital accounts fo ($100,000), what is the amount of minimum gain chargeback if partnership taxable income for the year is $20,000 and the liabilities are reduced by $150,000 to $350,000?

$0

$20,000

$50,000

$150,000