Final answer:
True, in a limited liability partnership, gains and losses from the realization of noncash assets during liquidation are divided based on the partners' capital account balances in the absence of an income-sharing plan.
Step-by-step explanation:
The statement that gains and losses from the realization of noncash assets by a limited liability partnership in a liquidation are divided in the ratio of the partners' capital account balances if there is no income-sharing plan in the partnership contract is True.
In absence of a specific agreement to the contrary, the Uniform Partnership Act dictates that profits and losses are to be shared according to the partners' capital contributions.
A limited liability partnership (LLP) protects each partner from personal liability, except for their investment in the business, which is an advantage over a general partnership where partners share personal liability for the business's debts and may risk personal assets.
The division of gains and losses according to capital account balances ensures a proportional distribution based on each partner's equity in the LLP.