Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has

Question:

Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Ms. Harper in each of the following situations.
a. Southwest Development Company is a sole proprietorship owned by Ms. Harper.
b. Southwest Development Company is a 50–50 of Ms. Harper and Christopher Black.
c. Southwest Development Company is a corporation.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...