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John is a 20% partner, Darrell is a 30% partner, and Abigail is a 50% partner in the ABC partnership. They are unrelated parties. According

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John is a 20% partner, Darrell is a 30% partner, and Abigail is a 50% partner in the ABC partnership. They are unrelated parties. According to the partnership agreement, John is allocated 40% of the profits and losses of the partnership. All of the partner's capital accounts are maintained in accordance with Code Sec. 704(b) and any liquidating distributions will be made in accordance with partners capital account balances. Abigail has agreed to restore any capital account deficits for herself, John, or Darrell. Will the special allocation to John have economic effect under the general rule or alternative rule? It will have economic effect until it creates a deficit in John's capital account Yes No Yes if Abigail and Darrell agreed to it in the partnership agreement Question 9 (12 points)

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