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How loss absorption of every partner is computed by

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Problem 1: What is the largest estimated possible loss that could arise in a safe payment schedule?

a. Book value of recorded assets

b. Book value of recorded non cash assets

c. Fair value of recorded assets

d. Any of the above

Problem 2: In preparing a cash distribution plan, loss absorption of every partner is computed by:

a. Dividing each partners' capital balance by the percentage of that partners' capital balance in relation to the total capital of the partners.

b. Multiplying each partners' capital balance by the percentage of that partner's capital balance in relation to the total partnership capital

c. Dividing the total of each partners' capital interest by the partner's profit and loss ratio

d. None of the above

Reference no: EM132744903

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