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Stanley, a partner of the Newtown partnership, made a loan to the partnership. The partnership is now in liquidation. Which one of the following statements is INCORRECT regarding the status of this loan during the liquidation process?A. the loan must be repaid before any cash distribution is made to the other partners, even if Stanley does not have a sufficient amount of capital to absorb all possible losses.B. The loan has a lower priority than obligations to outside creditors.C. If the partner has a negative safe capital balance, a portion or even all of the loan should be retained as an offset against the capital accountD. The loan is accounted for in liquidation as if it were a component of the partner's capitalE. If Stanley is insolvent and reports a negative capital balance, the handling of the loan become significant

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