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Which of the following is false regarding a partner's deficit balance? 1. The other partners may have to absorb the deficit balance. 2. A partner
Which of the following is false regarding a partner's deficit balance?
1. The other partners may have to absorb the deficit balance.
2. A partner cannot refuse to make contributions to cover their deficit balance.
3. Deficits can occur when the partnership has incurred significant operating losses.
4. The partner with a deficit balance should contribute assets to cover the deficit balance.
5. Deficits can occur when the sale of noncash assets during the liquidation process results in material losses.
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