The CRT partnership has decided to terminate operations and to liquidate the partnership assets. There are no partner loans, and all partners have positive capital balances. Gains and losses on liquidation and cash distributions to partners should be allocated as follows:

	Gains and Losses	Cash Distributions
A)	In profit and loss ratio	Based on capital balances
B)	Based on capital balances	In profit and loss ratio
C)	In profit and loss ratio	In profit and loss ratio
D)	Based on capital balances	Based on capital balances