The liquidation of a partnership is a process containing the following steps:

Pay partnership liabilities in cash.

Allocate the gain or loss on realization to the partners based on their income ratios.

Sell noncash assets for cash and recognize a gain or loss on realization.

Distribute remaining cash to partners on the basis of their remaining capital balances.

Identify the proper sequencing of the steps in the liquidation process.

$1,3,2,4.$

$1,4,3,2.$

$3,2,1,4.$

$3,2,4,1.$