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X and Y are equal partners in the XY partnership and share profits an$ losses accordingly. At the end of 20x1 the partnerships capital accounts
X and Y are equal partners in the XY partnership and share profits an$ losses accordingly. At the end of 20x1 the partnerships capital accounts reflect the following number due to a special allocation of depreciation
Capital X. Capital Y
($20000). $60000
All assets are sold for $40000 how will the liquidation affect X if the special allocation is to be respected?
A X contributes $20000 and receives $30000
B X contributes $20000 and receives nothing
C X contributes nothing
D X receives nothing
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