A Partner's Maximum Loss Absorbable Is Calculated by

question 50

Multiple Choice

A partner's maximum loss absorbable is calculated by

• A)dividing the partner's capital balance by his or her profit-and-loss-sharing percentage.
• B)multiplying the partner's capital balance by his or her profit-and-loss-sharing percentage.
• C)multiplying distributable assets by the partner's profit-sharing percentage.
• D)dividing the partner's capital balance by his or her percentage interest in capital.

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Definitions:

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