Gains and losses on the sale of noncash assets in a partnership liquidation are shared by the partners on the basis of their profit-and-loss-sharing ratio.

Question

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This statement is true. In a partnership liquidation, gains or losses on the sale of noncash assets are divided among partners based on their profit-and-loss-sharing ratio. This is because each partner's share of the assets and liabilities of the partnership is determined by their profit and loss allocation.

Gains and Losses on the Sale of Noncash Assets in a Partnership