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Han and Leia are partners sharing profits and losses equally. The insolvent partnership is to be liquidated. The status of the partnership and each partner

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Han and Leia are partners sharing profits and losses equally. The insolvent partnership is to be liquidated. The status of the partnership and each partner is as follows. Partnership Capital Balance Personal Assets Personal Liabilities Han $10,000 $30,000 $60,000 Leia (30,000) 80,000 5,000 Total $(20,000) Creditors the partnership: A. will have to share Han's interest in the partnership on a pro rata basis with his personal creditors. B. must first seek recovery against Leia because she is personally solvent and has a negative capital balance. C. have first claim to the partnership's assets before any partner's personal creditors have rights to those assets. D. will not be paid in full regardless of how they proceed legally because the partnership is insolvent

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