If a partnership agreement provides for an interest allowance at 10% annually on each partner's investment, The interest: Is ignored when earnings are not sufficient to pay the interest. Can make up...

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Extracted text: If a partnership agreement provides for an interest allowance at 10% annually on each partner's investment, The interest: Is ignored when earnings are not sufficient to pay the interest. Can make up for unequal capital contributions in dividing income or loss. ) Is an expense of the partnership. Must be paid because the partnership has a limited life. Legally becomes a liability of the general partner.