The Rebels Partnership, consisting of partners Jarrus, Bridg…
The Rebels Partnership, consisting of partners Jarrus, Bridger, and Orrelios, liquidated its business in 20X1. Due to an expected long liquidation period, a cash distribution plan was developed. The initial sale and realization of cash from noncash assets resulted in partner Jarrus properly getting $24,000. No other partners received cash along with Jarrus. Based on this information, which of the following statements is correct? I. Jarrus’s loss absorption potential (LAP) was higher than Bridger’s LAP and Orrelios’s LAP.II. Jarrus’s net capital interest was substantially larger than the net capital interests of Bridger and Orrelios.