The JKL Partnership Liquidated Its Business in 20X9

question 63

Multiple Choice

The JKL partnership liquidated its business in 20X9.Due to an expected long liquidation period,a cash distribution plan was developed.The initial sale and realization of cash from noncash assets resulted in partner K properly getting $24,000.No other partners received cash along with K.Based upon this information,which of the following statements is correct?
I.K's loss absorption power (LAP) was higher than J's LAP and L's LAP.
II.K's capital balance was substantially larger than the balances of J and L.

• A) I only
• B) II only
• C) Either I or II
• D) Neither I nor II

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Definitions:

Uptight

Describes someone who is anxious or unable to relax, often exhibiting tension in behavior or attitude.

Psychosexual Stage

Stages of a child's development identified by Freud, each characterized by a different focus of libido (sexual drive) satisfaction.

Oral Stage

A stage in Freud's psychosexual development theory focusing on infants' pleasure centers on the mouth during the first 18 months of life.

Personality Development

The ongoing process of developing and shaping one's personality, influenced by genetic, environmental, and social factors.