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In Accounting for the Liquidation of a Partnership, Any Gain

Question 128

Multiple Choice

In accounting for the liquidation of a partnership, any gain or loss on the realization of noncash assets should be allocated


A) first to creditors and the remainder to partners.
B) to the partners on the basis of their capital balances.
C) to the partners on the basis of their profit-sharing ratio.
D) only after all creditors have been paid.

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