Upon liquidation of a partnership, gains and losses on the sale of assets are divided according to the capital balances.

Name: Upon liquidation of a partnership, gains and losses on the sale of assets are divided according to the capital balances.
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Gains and losses on the sale of assets during the liquidation of a partnership are typically divided according to the profit and loss sharing ratio, not the capital balances.

Upon Liquidation of a Partnership, Gains and Losses on the Sale