Question: 2 . A , B , and C form the equal ABC partnership. Capital accounts are properly maintained. Depreciation is allocated completely to C ,

2 .

,

,

and C form the equal ABC partnership. Capital accounts are properly maintained. Depreciation is allocated completely to C

,

but any distributions in liquidation will be made equally to each partner, although partners are required to restore deficit capital accounts upon liquidation. Does the allocation of depreciation have economic effect?

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