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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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