Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition Lawrence J. Gitman

P11 Liability comparisons 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 Merideth in each of the following situations.

1. Southwest Development Company is a sole proprietorship owned by Ms. Harper.
2. Southwest Development Company is a 5050 partnership of Merideth Harper and Christopher Black.
3. Southwest Development Company is a corporation.

Please provide me with a detailed calculation for my understanding! Thank you