A, B, C, and D are partners sharing profits and losses equally. The partnership is insolvent and is to be liquidated. The status of the partnership and each partner is as follows: Personal Assets Partnership (Exclusive of Capital Balance Partnership Interest) $15,000 Credit $100,000 10,000 Credit 30,000 20,000 Debit 80,000 30,000 Debit 1,000 Personal Liabilities (Exclusive of Partnership Interest) $40,000 60,000 5,000 28,000 B Assuming the Uniform Partnership Act applies, the partnership creditors Must first seek recovery against C because he is personally solvent and he has a negative capital balance. will not be paid in full regardless of how they proceed legally because the partnership assets are less thanthe claims of the partnership creditors. Will have to share B's interest in the partnership on a pro-rata basis with B's personal creditors. Have first claim to the partnership assets before any partner's personal creditors have rights to thepartnership assets. LINK TO TEXT If a partner with a debit capital balance during liquidation is insolvent, the following results: The partner's debit balance will be allocated to the other partners. The partner must borrow money to invest in the partnership. The partnership will give the partner cash to the extent of the partners' debit balance. O None of the above. LINK TO TEXT If a partnership is undergoing a transformation to a corporation, which of the following is a result? The partners receive stock in the new corporation. Assets and liabilities are adjusted to fair value. The net assets are distributed to the partners in their profit and loss ratio. Assets and liabilities are adjusted to fair value and the partners receive stock in the new corporation