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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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