During a liquidation, if a partner's capital account balance drops below zero, what should happen?
a. the deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses.
b. the partner with a deficit contributes enough assets to offset the deficit balance
c. the other partners should contribute enough assets to offset the amount of deficit if the partner with a deficit is insolvent.
d. both b & c
Ans: b. the partner with a deficit contributes enough assets to offset the deficit balance
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