CHOOSE THE CORRECT ANSWER

Statement 1: When a deficient partner is solvent and has an existing loan balance , deficiency is eliminated first by offsetting the loan balance and if there is still a deficiency, other partners will absorb it. Statement 2: If the net proceeds received from the realization of non-cash assets is greater than its book value, a gain on realization is distributed to the partner's capital accounts using their profit and loss ratio. Es (1 Point) True, true False false True false False, true