Rutledge and Williams are partners who share profits and losses equally. The credit balances of their Capital accounts before liquidation are

$60,000 and $80,000, respectively. When they liquidate their partnership, they sell the noncash assets and pay all the partnership’s liabilities, leaving a balance of $120,000 in cash. What is the amount of the gain or loss on realization? How much cash should be distributed to each partner?