Liquidating Partnerships Prior to liquidating their partnership, MacPherson and Dunn had capital accounts of $35,000 and $66,000, respectively. Prior to liquidation, the partnership had no cash asse other than what was realized from the sale of assets. These partnership assets were sold for $120,000. The partnership had $3,000 of liabilities. MacPherson and Dunn share Income and losses equally. Determine the amount received by MacPherson as a final distribution from liquidation of the partnership. X 1. Begin with MacPherson equity prior to liquidation. 2. Adjust the equity for the gain or loss on the sale of the assets. 3. Allocate the gain/loss to partner capital accounts based on the income-sharing ratio. 4. Add beginning equity plus allocated gain/loss to determine liquidation distribution