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C is corrent because if a partnership agreement is silent regarding the allocation of partnership losses, then losses are allocated in the same manner as partnership profits.
A is incorrect because unless specifically identified in the partnership agreement, the partners’ capital contributions and/or outstanding loan balances are irrelevant in determining the allocation of partnership losses.
A is incorrect because unless specifically identified in the partnership agreement, the partners’ capital contributions and/or outstanding loan balances are irrelevant in determining the allocation of partnership losses.
D is incorrect because if a partnership agreement is silent regarding the allocation of partnership losses, then losses are allocated in the same manner as partnership profits.