Which of the Following Does NOT Need to Occur for a Partnership

question 23

Multiple Choice

Which of the following does NOT need to occur for a partnership allocation to have substantial economic effect?

• A)An adjustment must be made in the partner's capital account
• B)Liquidation proceeds must be distributed in accordance with capital accounts
• C)Profits and losses must be allocated to different partners in proportion to their equity contribution
• D)Following the distribution of sale proceeds,partners must be liable to the partnership to restore any deficit in their capital account

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