The BIG Partnership has decided to liquidate at December 31, 20X8. The capital and loan balances of the partners at December 31, 20X8, are provided below:PartnersCapitalBalancesLoanBalancesProfit-and-LossSharing PercentagesB$210,000CR$40,000CR 50%I 240,000CR 100,000DR 20%G 40,000CR 80,000CR 30%If you were to calculate the Loss Absorption Potential for each partner, how would the partners rank (from highest to lowest LAP)?
A. I, B, G
B. B, I, G
C. G, I, B
D. B, G, I
Answer: A
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