Prior to Liquidating Their Partnership, Porter and Robert Had Capital

question 24

Essay

Prior to liquidating their partnership, Porter and Robert had capital accounts of $160,000 and $100,000 respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of the partnership assets. These partnership assets were sold for $250,000. The partnership had $10,000 of liabilities. Porter and Robert share income and losses equally.
Required:
Determine the amount received by Porter as a final distribution from liquidation of the partnership.

---

Definitions:

Mineralcorticoids

A class of steroid hormones that regulate electrolyte and water balance by the kidneys.

Testosterone

A primary male sex hormone that plays key roles in the development of male reproductive tissues and secondary sexual characteristics.

Adrenal Gland

An endocrine gland situated above each kidney that releases adrenaline and steroids, aiding in stress management and metabolic processes.

Estrogen

A group of hormones that play a key role in the development and regulation of female reproductive and secondary sexual characteristics.