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Posted: July 29th, 2024
Dupage ACC 2205 The capital balances, prior to the liquidation of the XYZ partnership,
The capital balances, prior to the liquidation of the XYZ partnership, were as follows: X Capital, $130,000, Y Capital, $130,000 and Z Capital, $100,000. X, Y, and Z share profits and losses in the ratio of 5:3:2. As a result of a loan, the partnership owes Y $80,000. Which partner has the highest Loss Absorption Power (LAP) prior to liquidation?A. XB. YC. ZD. Both X and Y
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