In the liquidation of a partnership all liquidation expense and gains form the conversion of partnership assets must be allocated to:

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In the liquidation of a partnership, all liquidation expenses and gains from the conversion of partnership assets must be allocated to partners first. After the partners receive their share, any remaining amount can be allocated to creditors or other parties. This is because partners have residual claim on partnership assets after all other liabilities are paid off.

In the Liquidation of a Partnership All Liquidation Expense and Gains