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The JKL Partnership Liquidated Its Business in 2009

question 18

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The JKL partnership liquidated its business in 2009.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.


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