Question
Jack is admitted to the partnership of Peterson & Smith and makes an initial capital contribution of $15,000. Two years later, when liabilities of the
Jack is admitted to the partnership of Peterson & Smith and makes an initial capital contribution of $15,000. Two years later, when liabilities of the partnership exceed its assets by $20,000, the firm is dissolved. Peter had loaned the firm $5,000 six months before Jack was admitted; Rick had loaned the firm $8,000 three months after Jack was admitted. Jack has:
a. | no liability to Peter. | |
b. | liability to Peter and Rick only to the extent of her capital contribution. | |
c. | liability to Peter to the extent of her capital contribution and is personally liable to Rick. | |
d. | no liability to Rick. |
The Bronx General Partnership had assets worth $36,000 after liquidation. Tom, Paul, April, and Louis, equal partners, each contributed $3,000 into the capital pool at the inception of the business. Tom later loaned the business $8,000. They owe $24,000 to creditors. What will Tom get in distribution, assuming there is no agreement on the distribution of profits?
a. | $11,000 | |
b. | $8,000 | |
c. | $3,000 | |
d. | $9,000 |
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