Question 3 (8 points) Pamela and Aaron are equal partners (each is allocated 50 percent of profits and losses, except for a special allocation of depreciation) in PA Partners. Equity account

balances are as follows: Liabilities Capital, Pam Capital, Aaro b. Initial $1,000 $100 $100 After 4 years $1,000 $20 ($20) It appears that there was some sort of special allocation. a. Briefly describe how the "special allocation" affected the differing capital account balances. Assume there is no "gain chargeback" in the partnership agreement. Can this allocation have "econmic effect?" Explain.