Their deal is that all profits and losses are allocated 10


ABLE, inc. and The CAPITAL Corporation form a general partnership. Capital provides 90% of the cash. Able provides 100% or the partnerships management.

Their deal is that all profits and losses are allocated 10% to ABLE & 90% to CAPITAL until the partnership has earned a 10% cumulative annual return on original capital.

There after, all profits and losses are shared 50-50. ABLE uses a calendar year tax year. CAPITAL uses a June 30 tax year. What tax years are available to the partnership?

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Taxation: Their deal is that all profits and losses are allocated 10
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