Item $15$

$4\mathrm{.}25$ points

Time Remaining $1$ hour $16$ minutes $56$ seconds

$01$:$16$:$56$

Item $15$

Time Remaining $1$ hour $16$ minutes $56$ seconds

$01$:$16$:$56$

Which of the following statements is true concerning the distribution of safe payments?

Multiple Choice

The distribution of safe payments may only be made after all liabilities have been paid.

The distribution of safe payments assumes that any capital deficit balances will prove to be a total loss to the partnership.

There are no safe payments until the liquidation is complete.

Safe payments are equal to the recorded capital account balances of those partners with capital account balances in excess of $$0.$

In computing safe payments, partners with positive capital account balances are assumed to absorb an equal share of any deficit balance$($s$).$