Myles eBook Show Me How Liquidating Partnerships Prior to quidating their partnership, Ellis and Montgomery had capital accounts of $17,000 and $28,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $51,000. The partnership had $2,000 of liabilces. Ele and Montgomery share income and losses equally Determine the amount received by Ellis as a final distribution from quidation of the partnership 40,500 X Fak Check My W 1. Begn with Ellis equity prior to liqundation, 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 racio 4. Add beginning equity plus allocated gain/loss to determine liquidation distribution CO