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Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition Lawrence J. Gitman P1-1Liability comparisonsMerideth Harper has invested $25,000 in Southwest Development Company.

Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition

Lawrence J. Gitman

P1-1Liability comparisonsMerideth 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.

Southwest Development Company is asole proprietorshipowned by Ms. Harper.
Southwest Development Company is a 50-50partnershipof Merideth Harper and Christopher Black.
Southwest Development Company is acorporation.

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