In the liquidation of a partnership, it is necessary to (1) distribute cash to the partners (2) sell noncash assets, (3) allocate any gain or loss on realization to the partners, and (4) pay liabilities. These steps should be performed in the following order:
a. (2), (3), (4), (1).
c. (3), (2), (1), (4).
b. (2), (3), (1), (4).
d. (3), (2), (4), (1)
Use the following account balance information for Creekville Partnership to arswer questions 11 and 12 . Income ratios are $2: 4: 4$ for Harriet, Mike, and Elly, respectively.
$$
\begin{array}{lr}
{\text { Assets }} \\
\hline \text { Cash } & \$ 9,000 \\
\text { Accounts } & \\
\quad \text { reccivable } & 22,000 \\
\text { Inventory } & \frac{73,000}{} \\
& \$ 104,000 \\
\hline
\end{array}
$$
$$
\begin{aligned}
&\text { Liabilities and Owners' Equity }\\
&\begin{array}{lr}
\hline \text { Accounts payable } & \$ 21,000 \\
\text { Harriet, capital } & 23,000 \\
\text { Mike, capital } & 8,000 \\
\text { Elly, capital } & 52,000 \\
& \$ 104,000 \\
\hline
\end{array}
\end{aligned}
$$