In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowance:
A. Is an expense of the business.
B. Legally becomes a liability of the general partner.
C. Can make up for unequal capital contributions.
D. Must be paid because the partnership contract has unlimited life.
E. Is ignored when earnings are not sufficient to pay interest.
Answer: C
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