7. In the event a partnership needs to be liquidated, the following occurs: A) Noncash assets are converted to cash B) Any gain or loss on liquidation is allocated to the partners' capital accounts using the income and loss sharing ratio C) Liabilities are paid or settled D) Any remaining cash is distributed to the partners based on their capital balances E) All of the above 8. Erving and Malone formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Erving to receive a $60,000 per year salary. Also, cach partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Erving and Malone respective shares are: A) $67,500; $67,500 B) $92,500; $42,500 C) $57,857; $77,143 D) $90,000; $40,000 E) $35,000; $100,000