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

Consider the following scenario:

,

,

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

,

and any distributions in liquidation will be made according to the capital accounts of each partner. However, under local law, any excess of liabilities over assets at the time of liquidation must be made up equally by each partner.

Does the allocation of depreciation have an economic effect?

Group of answer choices

Yes

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