Question: In order to avoid inequalities in the liquidation process the legal doctrine of setoff effectively treats loans from partners to the partnership as: outside debt

In order to avoid inequalities in the liquidation process the legal doctrine of setoff effectively treats loans from partners to the partnership as: outside debt that can offset a deficit capital account balance. inside debt that can offset a deficit capital account balance. additional capital investments that can offset a partnership loss. additional capital investments that can offset a deficit capital account balance

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