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In the computation of a partner's Loss Absorption Potential (LAP), the individual partner's capital balance and profit-and-loss percentage are used in which of the following

In the computation of a partner's Loss Absorption Potential (LAP), the individual partner's capital balance and profit-and-loss percentage are used in which of the following ways?

Partner's Net Capital balance Profit and Loss percentage
A) Denominator Numerator
B) Numerator Not used
C) Numerator Denominator
D) Not used Denominator

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