Which of the following statements is correct regarding a partner's debit capital balances in a liquidation?
A) The partner should make contributions to reduce the debit balance to whatever extent possible.
B) If contributions are not possible, the other partners with credit capital balances will be allocated a portion of the debit balance based on their proportionate profit-and-loss-sharing percentages.
C) Partners who absorb another's debit capital balance have a legal claim against the deficient partner.
D) All of these statements are correct.
Correct Answer:
Verified
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