In a partnership agreement, if the partners agreed to an interest allowance of 10% annually...
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Accounting
In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowance: A. Is ignored when earnings are not sufficient to pay interest B. Can make up for unequal capital contributions C. Is an expense of the business D. Must be paid because the partnership contract has unlimited life E. Legally becomes a liability of general partner
In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowance:
A. Is ignored when earnings are not sufficient to pay interest
B. Can make up for unequal capital contributions
C. Is an expense of the business
D. Must be paid because the partnership contract has unlimited life
E. Legally becomes a liability of general partner
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